Shares of Nebius Group (NASDAQ: NBIS) have staged an impressive comeback, reaching new all-time highs on Friday following the disclosure that artificial intelligence and technology giant NVIDIA (NASDAQ: NVDA) has taken a position in the company. The stock soared to an intraday high of $47.68 before pulling back slightly to close at fresh record levels, gaining nearly 7% on the day.
This marks a stunning turnaround for Nebius, which had been reeling from a near 40% crash just weeks prior due to fears surrounding DeepSeek’s disruptive AI advancements.
Now up over 60% year-to-date and riding strong momentum, Nebius is seeing both price and fundamental tailwinds as major investors and corporations begin to take notice of its unique positioning in the AI infrastructure space.
According to its 13F filing with the SEC, NVIDIA disclosed that it had purchased nearly 1.2 million Class A shares of Nebius Group during Q4. The filing triggered a surge in investor interest, pushing the stock to record highs on Friday. This investment signals a potential endorsement of Nebius’s AI capabilities from the world’s most dominant AI chipmaker. NVIDIA’s move also suggests a belief in Nebius’s long-term potential despite the short-term volatility it has faced in recent weeks.
Three weeks ago, Nebius stock plummeted nearly 40% following the launch of DeepSeek’s latest AI model. Investors feared that DeepSeek’s cost-efficient AI solutions would disrupt traditional AI infrastructure businesses like Nebius. However, those concerns appear to have been overstated. Since the crash, Nebius has recouped all its losses and is now trading at all-time highs, fueled by substantial corporate updates and growing institutional interest.
Nebius has continued to expand its AI services and infrastructure, positioning itself as a leader in AI deployment. Its AI-focused subsidiaries, including Toloka AI, Avride, and TripleTen, are seeing increased demand, and the company has been aggressively scaling its data center footprint.
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Institutional Interest Beyond NVIDIA: Wall Street Takes Notice
While NVIDIA’s investment was the primary catalyst for Friday’s surge, it is not the only major player betting on Nebius. Several other institutional investors have recently disclosed new positions in the stock. George Soros’s Soros Capital has acquired 630,000 shares, and Marshall Wace has acquired 2.51 million shares. Columbus Hill has made NBIS its top holding, while Scoggin has also taken a new position, ranking it among its top 10 holdings.
Following its market debut, Nebius has largely escaped analyst attention. However, that is beginning to change. On January 28, BWS Financial initiated coverage with a Buy rating and a $51 price target, citing Nebius’s strong AI positioning and proprietary infrastructure.
BWS Financial analyst Hamed Khorsand emphasized that Nebius’s AI services offer significant competitive advantages, including Toloka AI and Nebius AI. He also highlighted the company’s robust financial standing, supported by substantial cash reserves and diversified revenue streams.
What’s Next for Nebius?
With institutional interest growing, NVIDIA’s investment boosts credibility, and analysts are beginning to cover the stock. Nebius appears to be entering a new phase of market recognition.
As AI infrastructure demand expands and Nebius looks to scale its operations, the stock could see further gains. However, with the stock now at all-time highs, investors will be watching closely to see if Nebius can sustain its momentum and translate these recent developments into sustained long-term growth.
For now, NBIS appears to be not slowing down, and Wall Street is finally starting to notice.
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