Nebius Group saw its shares spike 8.4% in late Nasdaq trading Wednesday, reaching $287.49 after closing the acquisition of Eigen AI. The Amsterdam-based AI cloud company said the deal, which adds model optimization software to its platform, is a strategic move to deepen its software capabilities. Shares briefly touched an intraday high of $297.75, according to market data.
Nasdaq-100 Inclusion on the Horizon
The company is set to join the Nasdaq-100 index before the market opens on June 22, a milestone that is expected to drive fresh demand from index funds. Nasdaq has confirmed the rebalance will take effect ahead of the open. With over 200 products tracking the index, representing more than $800 billion in assets globally, the inclusion places Nebius alongside other AI infrastructure plays like CoreWeave and Astera Labs.
Eigen AI Acquisition Details
The acquisition of Eigen AI brings inference tools and model optimization technology to Nebius, which could help customers reduce steep GPU costs. According to Simply Wall St, the deal also gives Nebius an engineering office in the Bay Area, putting it closer to U.S. AI developers and clients. This move is seen as a complement to the company's core capacity focus, rather than a pivot to a software-centric strategy.
Capacity and Capital Expenditure
Capacity remains the key issue for Nebius. The company reported first-quarter revenue of $399 million, a sharp increase from $50.9 million a year earlier. In May, Reuters reported that Nebius raised its 2026 capital expenditure plan to between $20 billion and $25 billion. CEO Arkady Volozh noted that "several customers are competing for every GPU" that comes online, highlighting the intense demand for computing power.
Expansion in the UK
Nebius is also expanding its hardware footprint in the UK, announcing plans to invest approximately 1.7 billion pounds across four sites. The company expects three new NVIDIA-powered builds to reach 65 megawatts once fully operational in 2027. Paolo Guglielmini, NVIDIA's EMEA vice president, described Britain as "one of Europe's most ambitious AI markets."
Key Customer Deals
Large customers have already absorbed much of the growth risk. In March, Reuters reported that Nebius signed a five-year AI infrastructure deal with Meta Platforms valued at up to $27 billion, following previous work with Microsoft. Additionally, NVIDIA purchased an 8.3% stake in Nebius for $2 billion, underscoring the strategic importance of the partnership.
Analyst Perspectives
Morningstar analyst Javier Correonero said Nebius is not a meme stock, but he called the shares overvalued after they surged 320% over the past 12 months. Correonero described management's strategy as "the right one," pointing to the large Microsoft and Meta contracts as a bridge to higher-margin enterprise bets. Wall Street price targets have lagged the stock's performance. BofA's Tal Liani raised his target to $280 from $240 on June 8, maintaining a Buy rating, but the stock has since traded above that level.
Risks and Outlook
Despite the bullish momentum, the trade carries risks. A Seeking Alpha note on June 13 flagged high valuation, infrastructure hurdles, the chance of overcapacity, and the threat of weaker AI demand. While the Eigen AI acquisition adds deeper software capabilities, it also introduces integration challenges alongside the need to line up power, build data centers, and meet significant financing requirements. For now, Nebius is viewed primarily as an AI capacity play. Investors are watching closely to see if the company can deliver on its promise to turn promised computing power and chips into live clusters while maintaining the margins that have driven the stock's recent rally.
