TLDR
- Nvidia disclosed a 9.3% passive stake in Nebius, comprising roughly 22.26 million Class A shares
- The stake includes Nvidia’s $2 billion investment announced in March, when it held an 8.3% stake
- NBIS rose more than 6% in premarket trading following the disclosure
- Nebius secured a $775 million debt facility last week backed by AI infrastructure and customer contracts
- Northland Securities raised its price target to a Street-high $410; average target implies 38.5% upside
Nvidia disclosed a 9.3% passive stake in Nebius Group on Monday, sending NBIS up more than 6% in premarket trading. The stock had already gained 118% year-to-date before the news.
The stake comprises roughly 22.26 million Class A shares. That includes 1.19 million shares held directly and 21.07 million shares held via pre-funded warrants that cannot be exercised until September 11, 2026.
Nvidia’s stake is classified as “passive,” meaning it cannot use the position to influence Nebius’ business decisions or take activist actions against the company.
The disclosure builds on Nvidia’s $2 billion investment in Nebius announced back in March, when it held an 8.3% stake. The latest 13G filing pushed that figure up to 9.3%.
The news also lifted other neocloud names. CoreWeave and Iren both moved higher in early trading following the Nvidia filing.
Analyst Upgrades Follow
The Nvidia disclosure came just days after Nebius secured a $775 million debt facility backed by its AI GPU infrastructure and customer contracts. That deal allows the company to expand without diluting existing stockholders.
Freedom Capital analyst Paul Meeks upgraded NBIS from Hold to Buy and raised his price target to $200 from $159. He projects Nebius’ revenue will grow 41-fold between 2025 and 2028.
Northland Securities analyst Nehal Chokshi was more aggressive. He reiterated his Buy rating and lifted his target from $248 to a new Street-high of $410.
Chokshi said the debt financing deal showed Nebius can raise capital without issuing new stock — a concern that had weighed on investors. He believes the company should trade closer to rival CoreWeave on valuation.
Where Analysts Stand
Not every analyst is fully on board. NBIS carries a Moderate Buy consensus on TipRanks, based on five Buy ratings and three Holds.
The average price target sits at $252.86, implying about 38.5% upside from current levels.
Nebius is an AI-focused cloud infrastructure company based in Amsterdam, spun off from Yandex. The company is targeting more than 5 gigawatts of computing capacity by end-2030.
Nebius is also a Nvidia customer, sitting alongside CoreWeave in the neocloud category — companies building data center infrastructure specifically to power AI workloads.
The Street-high target of $410 from Northland Securities represents the most bullish call on the stock following Monday’s filing.
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