AI giant Nvidia (NVDA) has taken a massive stake in AI cloud company Nebius (NBIS), sending both stocks higher Tuesday. Nvidia first disclosed a stake in the company back in 2025, but today the former revealed it’s built a 9.3% stake in Nebius. NVDA stock is up 2% on Tuesday, while NBIS shares rocketed as much as 17.5% higher.
According to a recent filing with the Securities and Exchange Commission (SEC), Nvidia now holds 12% of its investment portfolio in Nebius (NBIS), having increased its stake by more than $3.8 billion. Nvidia previously owned roughly 1.1 million shares of Nebius stock, but boosted its stake by more than 21 million shares.
Back in March, Nvidia said it would invest $2 billion in the company. At the time, Nvidia CEO Jensen Huang said the two companies were deepening their partnership “scaling the cloud to meet the surging global demand for intelligence.” With Tuesday’s gains, shares of Nebius have gained 150% this year so far and quadrupled over the past 12 months. Furthermore, analysts have backed NBIS stock to surge further, with the Wall Street consensus at $276. Citi analysts, meanwhile, have a “buy” rating and $287 target for the stock.
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This increased investment also marks a huge vote of confidence from Nvidia. This shouldn’t come as a surprise. At the keynote address at the Computex technology trade show in Taipei, Taiwan, last month, Huang lauded Nebius as one of a select group of “world-class AI clouds.” He cited the neocloud’s impressive customer list and Nvidia’s own experience working with the company. “We worked with Nebius, and they are growing incredibly fast,” Huang said.
Furthermore, the disclosure fueled semiconductor and other AI-related stocks to lead the major indexes higher. Coreweave (CRWV), a Nebius rival also backed by Nvidia, saw its stock jump more than 7% Tuesday. A common occurrence in the AI stock space is that when one climbs, the others also rise in unison. While Nvidia hasn’t had as big a year as it did last year, NVDA remains up 10% YTD, while other AI stocks are up just as much. Competition in the space is high, and Nvidia’s latest investment in Nebius could help it widen the gap once again on AI giants like AMD and TSMC.