Nebius Stock Pops After Nvidia’s Recent Bet On AI Infrastructure Company: Stocktwits Following Spikes 165% WoW

Shares of Dutch artificial intelligence infrastructure company Nebius Group ($NBIS) have seen an uptick in the past week. The upside followed the company's announcement that it raised equity capital from investors, including Nvidia Corp. ($NVDA).

Last Monday, Nebius said it has entered into definitive agreements for a $700 million private placement with a select group of institutional and accredited investors, including Accel, NVIDIA, and certain accounts managed by Orbis Investments.

Nebius said it plans to use the financing to further develop its full-stack AI infrastructure, including large-scale GPU clusters, cloud platforms, and developer tools and services. 

Arkady Volozh, founder and CEO of Nebius said, “We have demonstrated the scale of our ambitions, initiating an AI infrastructure build-out across two continents.”

“This strategic financing gives us additional firepower to do it faster and on a larger scale. I’m grateful to our investors for the trust they have placed in us – our team is ready to deliver.”

Nebius was a spin-off from the publicly traded Yandex Group, the Dutch holding company of Russian Internet giant Yandex. After the Russia-Ukraine war, the Nasdaq suspended trading in the parent company’s shares in March 2022. The stock was delisted from the exchange a year later. Yandex appealed the delisting decision and agreed to divest all Russian assets in 16 months. 

This divestment concluded in July, and the leftover business included infrastructure and business units outside Russia. The shares of the spin-off business, named Nebius, began trading on the Nasdaq on Oct. 21.

After opening the debut session at $14.29 and closing at $20, the stock was largely rangebound between $17 and $23 until the announcement concerning the private placement.

Since Dec. 2, the stock has gained about 42% over merely four sessions.

On Stocktwits, Nebius  saw one of the biggest increases in following: Over the past week, the number of watchers of the stock climbed a steep 165%.

Some of the retailers on Stocktwits see Nebius as undervalued. 

The stock ended Thursday’s session down 1.44% at $31.16 but recouped some of the losses in the after-hours session. 

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