Wall Street bumps NBIS after a Meta deal

Goldman Sachs lifted its price target on Nebius Group to $205 after Meta signed an artificial-intelligence infrastructure contract worth up to $27 billion. (finance.yahoo.com) The bank raised its revenue estimates for Nebius by roughly 30% to 54% for fiscal 2027 through 2030 and left its 2026 forecast unchanged. Nebius shares traded at $163.82 late Tuesday morning, up from a $154.56 close on Monday, according to Google Finance. (finance.yahoo.com) (google.com) Nebius disclosed the Meta agreement on March 16 and said the five-year contract includes $12 billion of dedicated computing capacity starting in early 2027, plus up to $15 billion of additional capacity over five years. The company said 2026 guidance did not change when it announced the deal. (nebius.com) Artificial-intelligence infrastructure is the business of renting out the chips, servers, networking gear, and data-center space used to train and run large models. Nebius sells that capacity as a cloud service, and Meta is locking in supply as competition for advanced graphics processing units stays tight. (nebius.com) (bloomberg.com) The size of the Meta contract is large relative to Nebius’s current business. Nebius reported $529.8 million in 2025 revenue, including $227.7 million in the fourth quarter, after spending $4.07 billion on property and equipment during the year. (nebius.com) Reuters reported on March 16 that Meta agreed to buy $12 billion of capacity across multiple locations by 2027 and could take another $15 billion if Nebius does not sell that capacity to other customers. That structure gives Nebius a large anchor customer while leaving room to sell excess capacity elsewhere. (finance.yahoo.com) Bank of America also turned more bullish on Nebius and raised its price target to $175 from $150, according to market reports cited by Stocktwits and MSN. Other analysts have been less aggressive, with TipRanks noting at least one downgrade tied to valuation after the stock’s rally. (stocktwits.com) (google.com) Nebius is a new public-market name with older roots. The company completed the sale of Yandex’s Russia-based businesses in July 2024, changed its name to Nebius Group in August 2024, and resumed Nasdaq trading in October 2024 under the ticker NBIS. (nebius.com 1) (nebius.com 2) (finance.yahoo.com) The next test is execution. Nebius has to build and deliver the first dedicated Meta capacity in early 2027, and Wall Street is now valuing the company on whether that promised capacity turns into revenue at the scale Goldman Sachs is modeling. (nebius.com) (finance.yahoo.com)