Nvidia's Surprise Stake Sends NBIS Stock Soaring

Nvidia's surprise announcement that it holds a 9.3% stake in Nebius Group N.V. sent shockwaves through the market, propelling NBIS stock up by 4.6% overnight.

The chipmaker has been quietly accumulating shares of Nebius since its $2 billion investment in March, which was initially estimated to be around 8.3%. The latest filing reveals that Nvidia beneficially owns 22.25 million Class A ordinary shares of Nebius, including 1.19 million held directly and 21.07 million via pre-funded warrants.

The stake is higher than previously thought, but it's not surprising given the growing trend of tech giants investing in cloud infrastructure. Analysts are optimistic about Nebius' prospects, with 10 out of 16 rating the stock 'Buy' or higher and an average price target of $258.71 implying a 42% upside.