What to know:
- NBIS stock surged in premarket trading after Nvidia increased its stake in Nebius to 9.3%, boosting investor confidence.
- Nvidia disclosed ownership of 22.25 million Class A shares, including pre-funded warrants, expanding its investment from 8.3%.
- Freedom Capital upgraded Nebius to “Buy” and raised its price target to $200, signaling further upside potential.
NBIS stock gained tremendously in the premarket session on Tuesday following the announcement by Nvidia of its increased stake in the AI cloud computing firm Nebius Group.
NBIS stock closed Monday’s session in the regular market at $182.62, which was 2.76% higher. This upward trend persisted into the premarket session on Tuesday, where its price shot up by 6.61% to $194.70.
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NBIS Stock Jumps on Nvidia Filing
This latest rally followed the submission by Nvidia of a Schedule 13G, in which it stated that it has beneficial ownership of 22.25 million Class A ordinary shares of Nebius. This indicates that Nvidia currently holds an investment stake of 9.3% passively in the AI infrastructure firm.
From the disclosure document, it shows that Nvidia has direct ownership of 1.19 million shares, while the other 21.07 million shares are linked to pre-funded warrants. This investment comes after Nvidia’s $2 billion commitment from March, when Nvidia had an 8.3% investment stake.
These warrant shares are non-exerciseable until September 11, 2026.
Freedom Capital Raises NBIS Stock Target to $200
With Nvidia’s larger commitment, there is even better sentiment surrounding the NBIS stock, which has appreciated by almost 9% between Friday and Monday. Despite the recent appreciation, the shares continue to trade below their all-time highs attained last month in June.
On the other hand, Freedom Capital raised its rating on Nebius to “Buy” from “Hold”, while raising the price target from $159 to $200. With Monday’s closing price, the new price target implies an upside potential of more than 9%.
Nebius Secures $775M to Expand AI Cloud Business
Furthermore, Nebius continues growing its AI cloud operations. The company has recently raised $775 million in senior secured debt financing for the development of its AI infrastructure network on a global scale.
The deal was guaranteed by the presence of deployed GPU hardware and contractual cash flow generation from the investment-grade client. According to Nebius, such a framework can be leveraged to raise more than $40 billion worth of future customer obligations.
The large players also continue getting interested in Nebius. Specifically, in May, the AI-focused hedge fund Situational Awareness, established by the former OpenAI researcher Leopold Aschenbrenner, revealed the ownership of a 5.6% stake in Nebius.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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