Nebius Shares Post 50 Percent Surge After Microsoft AI Agreement

2025-09-10 02:45:24

(MENAFN) Shares of Amsterdam-based artificial intelligence (AI) infrastructure provider Nebius surged over 50% on Tuesday following a landmark multi-billion-dollar agreement with Microsoft. The deal, worth up to $19.4 billion, was announced on Monday and focuses on delivering cloud computing power for AI applications.

Under the terms of the agreement, Nebius stands to earn $17.4 billion from the deal through 2031, with the potential for Microsoft to purchase additional processing capacity, pushing the total deal value to $19.4 billion. Investors such as Nvidia and Accel have backed the agreement.

Investor enthusiasm was palpable, as Nebius shares rocketed by 60% in after-hours trading on Monday and maintained upward momentum on Tuesday. Meanwhile, shares of rival CoreWeave also rose by 8% in response to the news.

The partnership highlights the continued, strong demand for advanced processing hardware crucial to powering next-gen AI systems. Nvidia, the dominant player in the AI infrastructure market, forecasted last month that its sales growth for the quarter would remain above 50%, driven by the ongoing need for AI chips. The company reported stronger-than-expected earnings and revenue for the period ending in June.

On the earnings call, Nvidia Chief Financial Officer Colette Kress emphasized the scale of investment expected in AI infrastructure, projecting between $3 trillion and $4 trillion in spending by the end of the decade.

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