Nebius (NBIS) Shares Soar to All-Time Highs Driven by Eigen AI Acquisition and Meta Deal

TLDR

• NBIS stock rose approximately 8.95% during the day, reaching a 52-week peak of $179.96
• Nebius agreed to purchase Eigen AI for roughly $643 million to enhance its Token Factory AI platform
• A $27 billion agreement with Meta AI elevated the company’s total contracted backlog to nearly $50 billion
• Goldman Sachs increased its price target following the Meta deal; the consensus rating is “Moderate Buy” with an average target of $154.75
• Q1 2026 earnings are scheduled for May 13, with ARR growth and progress on Eigen AI integration as key focus areas

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(SeaPRwire) –   Nebius Group (NBIS) shares opened at $175.92 on Wednesday, climbing to a 52-week high of $179.96—a gain of nearly 9% for the day. Since the start of the year, the stock has surged more than 110%.

Nebius Group N.V., NBIS

This upward movement follows two significant developments occurring in close succession: a $643 million acquisition of Eigen AI and a $27 billion contract with Meta.

The Eigen AI acquisition aims to integrate model-optimization and inference capabilities into Nebius’s Token Factory platform. Analysts believe the transaction could boost profit margins and strengthen the company’s position in capturing a larger share of production-level AI workloads.

The Meta contract has drawn the most attention. Combined with existing partnerships, including one with Microsoft, it has driven Nebius’s total contracted backlog to almost $50 billion—a figure that typically captures Wall Street’s interest.

Goldman Sachs responded swiftly by raising its price target on NBIS after the Meta announcement. BWS Financial and DA Davidson both set $200 price targets with Buy ratings. Cantor Fitzgerald began coverage with an Overweight rating, though at a more cautious $129 target. The overall analyst consensus is “Moderate Buy,” with an average price target of $154.75.

Institutional investors have also been increasing their holdings. Millennium Management initiated a new position valued at approximately $11.6 million in Q1. UBS added about $9 million, while Oppenheimer expanded its stake by 90.9% in Q4. Total institutional ownership now stands at roughly 21.9%.

What’s Driving the Backlog Story

The $50 billion contracted backlog forms the foundation of the bullish outlook. Multi-year agreements with hyperscalers such as Meta and Microsoft provide clear revenue visibility extending well into 2026, when Nebius projects annual revenue between $3.0 billion and $3.4 billion.

Such long-term visibility is uncommon and has been a primary factor behind momentum investors pushing the stock to record highs.

Risks Worth Watching

However, not all metrics are robust. Fiscal year 2025 operating cash flow totaled around $402 million—but included nearly $983 million in customer prepayments. Excluding those advances, the underlying cash flow appears considerably weaker.

Management has noted that contracted cash inflows will cover only about 60% of capital expenditure needs for 2026. This shortfall raises legitimate concerns about potential equity dilution or the need for refinancing.

Insider selling has also been notable. CTO Danila Shtan sold over 13,000 shares in late March, while insider Andrey Korolenko disposed of more than 31,000 shares in early April. In total, insiders have sold approximately 135,622 shares, valued at over $15.6 million, in the past three months.

The stock exhibits a beta of 4.03, indicating high volatility in both directions. With a projected full-year EPS of -$2.44 and a negative P/E ratio of -120.49, valuation remains entirely based on future expectations.

Q1 2026 earnings are set for release on May 13. Investors will closely monitor ARR growth, updates on hyperscaler deployments, and initial insights into the timeline for Eigen AI integration.