Artificial Intelligence (AI) infrastructure company Nebius Group (NBIS) is experiencing a rally on Monday morning following news of a new investment from graphics card and AI company Nvidia (NVDA). Nebius Group is selling $700 million worth of NBIS stock to investors via a private placement, which includes 33,333,334 shares priced at $21 each.
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Nvidia is among the companies participating in this private placement. Venture capital firm Accel and certain accounts managed by investment management firm Orbis Investments are also participating. The exact details of these investments aren’t clear yet. However, we know that Accel’s investment includes observer rights for Partner Matt Weigand and a director nomination for him at the company’s 2025 Annual General Meeting of Shareholders.
What This Means for NBIS Stock
Nebius Group stock is benefitting from today’s news. As of this writing, the shares have rallied 17.01%. Investors will note that NBIS shares only resumed trading in October and have jumped 9.95% in price since then.
It’s also worth mentioning that Nebius Group announced the end of a share buyback program alongside its private placement news. This makes sense as that program allowed investors to sell shares back to the company for $10.50 each. It was implemented to give investors an exit after Nebius Group sold its Russian businesses. There’s no longer a need for it, as the stock has been trading well above that price since the trading halt ended.
Is NBIS Stock a Buy, Sell, or Hold?
That’s hard to say, considering Nebius Group has only recently resumed public trading. As such, there’s not much in the way of updated analyst coverage of the shares. Even so, the fact that it has attracted investors such as Nvidia and private equity groups is worth keeping in mind. Also, with the AI space continuing to grow, an investment in NBIS shares could pay off in the long term.
