AI infrastructure company Nebius (NBIS) gained 17.1% yesterday following news that Nvidia (NVDA) participated in its latest $700 million private funding round. The fresh capital will enable Nebius to expand its GPU clusters, an essential component for powering AI applications.
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Nebius, formerly known as Yandex N.V., renamed itself in August 2024 after selling the majority of its Russian business, including the country’s most popular search engine, Yandex. Importantly, the funding comes just six weeks after Nebius stock resumed trading on the Nasdaq (NDAQ) exchange. Nebius had been suspended from the exchange for nearly three years due to sanctions imposed on Russia amid its conflict with Ukraine.
Interestingly, Nebius is making huge investments in Europe’s AI market, with plans to invest over $1 billion by mid-2025 to benefit from the surging demand for AI computing power. Also, it plans to establish its first GPU cluster in the United States.
Nvidia Continues to Ride the AI Boom
By investing in AI startups, Nvidia gains access to advanced technologies that can be integrated into its products. As of September 2024, Nvidia had participated in more than ten $100 million-plus funding rounds, according to data from Crunchbase. Since 2023, the company has supported more than 50 startups.
As AI continues to gain momentum across various industries, such as healthcare, automotive, and retail, Nvidia’s investments are likely to drive significant value for the company and its shareholders.
Is Nvidia a Buy, Sell, or Hold?
Turning to Wall Street, NVDA has a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the last three months. At $176.14, the average Nvidia price target implies a 27.06% upside potential. Shares of the company have gained about 180% year-to-date.
