Nebius Group (NBIS) Shares Surge 1.13% as Landmark Microsoft Deal Drives Five-Day Rally of 20.54%

Nebius Group (NBIS) shares climbed 1.13% on Monday, extending their winning streak to five consecutive days with a cumulative gain of 20.54%. The stock reached its highest intraday level since September 2025, with a 3.17% surge during the session, reflecting renewed investor confidence in the company’s strategic direction.

The recent rally is largely attributed to a landmark $17.4 billion, multi-year GPU cloud infrastructure deal with Microsoft. The agreement, spanning until 2031, validates Nebius’s full-stack AI platform and secures long-term revenue stability. The partnership also positions the company to expand its data-center operations, including a facility in New Jersey, to meet Microsoft’s demands, reinforcing its credibility in the hyperscaler AI infrastructure market.

Analyst activity has further fueled optimism. D.A. Davidson reaffirmed its “Buy” rating, while BWS Financial raised its price target to $130. The Motley Fool highlighted Nebius’s potential as a long-term growth story, citing rising demand for AI data centers and the company’s differentiated technology. These upgrades have amplified market sentiment, with the stock hitting a 52-week high amid strong execution on expansion plans.

Capital-raising initiatives, including a $3.7 billion funding round, underscore Nebius’s aggressive growth strategy. While these efforts provide critical resources for infrastructure development, they also raise concerns about share dilution. Investors are monitoring how the company balances rapid expansion with shareholder equity preservation, particularly as it aims to fulfill obligations under the Microsoft contract.

Broader AI market dynamics continue to influence Nebius’s trajectory. The sector’s high valuations and competitive landscape—highlighted by comparisons with Nvidia—emphasize the need for sustained execution. With Q3 earnings due in early September, the company’s ability to convert the Microsoft deal into tangible revenue will be a key focus for investors assessing its long-term viability.