NVIDIA Discloses 9.3% Stake in European Cloud Provider Nebius, Sending Shares Soaring
NVIDIA Discloses 9.3% Stake in European Cloud Provider Nebius, Sending Shares Soaring
Deep News
19:51
NVIDIA has disclosed a 9.3% stake in the Dutch cloud services company NEBIUS, according to a filing with the U.S. Securities and Exchange Commission, driving a sharp pre-market rally in the stock on Tuesday.
Over the past 12 months, NEBIUS shares have surged nearly 250%.
In recent years, NVIDIA has consistently increased its holdings in multiple artificial intelligence companies.
The disclosure of the stake in the European cloud provider sent shares of NEBIUS significantly higher on Tuesday.
The Amsterdam-based firm has grown into a leading European provider of AI computing power cloud services. Amid a backdrop of massive global investment in computing infrastructure by 2026, the company has secured cooperation agreements with several technology giants.
Following the news, NEBIUS shares rose 7% in pre-market trading.
The AI industry boom has significantly benefited NEBIUS, with its stock gaining close to 250% over the last year. As of early Tuesday trading, the company's market capitalization reached $46 billion.
NVIDIA had previously announced plans to invest $2 billion in the Nasdaq-listed Dutch company.
Under the cooperation agreement, the two parties will jointly implement artificial intelligence infrastructure, operations and maintenance of computing clusters, AI inference services, and the planning and supporting services for AI computing factories.
In March of this year, Meta, the metaverse giant, signed a long-term cooperation agreement with NEBIUS, committing up to $27 billion to procure its AI computing resources.
In recent years, the chip giant has been actively building stakes in high-quality global AI enterprises.
In March, when OpenAI completed an $11 billion financing round, NVIDIA participated with a $3 billion investment. In February, NVIDIA also joined a $3 billion financing round for Anthropic.
Investment bank Liberum Capital Markets issued a research report on Monday, upgrading NEBIUS to a "buy" rating.
In the prior week, NEBIUS announced the completion of the first round of a $775 million senior secured bond financing, with collateral being operational GPU computing equipment and repayment sourced from the cash flow of a long-term contract with an investment-grade client. Liberum Capital Markets assessed this financing as a significant positive catalyst for the company's development.
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
