Nebius shares soar 49% in premarket trading on multi-billion AI infrastructure deal with Microsoft

Nebius Group shares surged over 49% in U.S. premarket trading following the announcement of a multi-year deal with Microsoft valued at $19.4 billion. The Amsterdam-based AI infrastructure firm, which provides GPUs for AI model training, will supply cloud computing power for Microsoft's AI workloads, with $17.4 billion guaranteed through 2031. This significant agreement validates Nebius' market position and also boosted rival AI infrastructure firm CoreWeave's shares by 6.6%, indicating broader investor confidence in the rapidly expanding AI infrastructure sector.

Analysis

Artificial intelligence infrastructure provider Nebius Group (NBIS) has secured a transformative multi-year deal with Microsoft valued at $19.4 billion, which includes a guaranteed $17.4 billion in revenue for Nebius through 2031. The agreement, centered on providing GPU-based cloud computing power for Microsoft's AI workloads, offers Nebius exceptional long-term revenue visibility and fundamentally solidifies its position in the high-demand AI infrastructure market. Investor reaction has been exceptionally strong, with Nebius shares surging 60% in extended trading and another 49% in premarket, indicating a significant upward re-rating of the company's valuation. The positive sentiment has extended to the broader sector, lifting shares of rival CoreWeave (CRWV) by 6.6%, which suggests the market views this as a validation of the business model for specialized AI infrastructure providers and a signal of massive, ongoing capital deployment by hyperscalers.

Key Decisions for Investors

• Investors should re-evaluate valuation models for Nebius (NBIS) to incorporate the guaranteed $17.4 billion revenue stream through 2031, while remaining mindful of the significant price appreciation from its recent 60% and 49% single-session surges.
• The positive 6.6% stock reaction in rival CoreWeave (CRWV) indicates a bullish sector-wide trend; this deal serves as a strong signal of persistent high demand for third-party GPU capacity that may benefit other AI infrastructure players.
• For Microsoft (MSFT), this deal highlights its substantial capital commitment to securing AI compute power, and investors should monitor how these large-scale infrastructure investments translate into tangible AI-related revenue and market share gains.