Nebius Group N.V.

NBIS

Market cap $49.3B

Reflection AI, a U.S. startup vying to develop open models, has signed a $1 billion compute deal with European AI infrastructure company, Nebius.

NBIS is scaling its AI-native hyperscaler with bigger infrastructure, platform expansion, record demand and fresh capital fueling long-term growth.

Meta could be forming its own cloud computing division. Nebius and CoreWeave have staked a lot of their future on meeting Meta's computing needs.

AI startup Reflection said on Tuesday it has signed a more than $1 billion deal ​to secure computing capacity from Nebius , including ‌access to Nvidia's latest chips.

Nebius Group N.V. is positioned as a vertically integrated, AI-native cloud platform, leveraging Cloud 3.6 to drive customer acquisition and retention. Cloud 3.6 introduces Echo, an AI DevOps agent, and deeper SkyPilot integration, reducing operational friction and enabling rapid, cost-efficient AI workload deployment. NBIS targets enterprise adoption with enhanced governance, security, and performance features, aiming to differentiate from hyperscalers and support regulated industries.

On CNBC's “Halftime Report Final Trades,” Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, named DICK'S Sporting Goods, Inc. (NYSE:DKS) as his final trade.

Nebius plans a 65MW infrastructure expansion across three UK sites by FY27, which is projected to generate $546 million in incremental revenue. Enterprise demand for cheaper open-source AI models benefits Nebius due to its optimized cloud stack and highly competitive compute pricing compared to major legacy hyperscalers. Soaring Nvidia B200 GPU rental prices combined with short-duration contracts provide a significant tailwind that could expand the company's gross margins above 80%.

Nebius received an investment from Nvidia, and announced large computing deals with reputable customers. The company's May earnings report delivered a big beat to expectations.

Micron is thriving from a memory chip shortage. Nebius is rapidly expanding its footprint.

Nebius is rated Buy, driven by its superior AI infrastructure platform and robust inference software solutions. NBIS boasts a diversified customer base, a healthy funding model, and a strong cash position, supporting aggressive capacity expansion with minimal net debt. NBIS differentiates itself with end-to-end AI offerings, including Token Factory and recent acquisitions, enabling cost-effective, scalable AI for a broad client base.