Nebius Group hits record high as $17.4 billion Microsoft deal affirms expansion strategy

Core Insights - Nebius Group's shares surged nearly 44% to $91.75 following a $17.4 billion deal with Microsoft for AI infrastructure over five years, potentially expanding to $19.4 billion with increased demand [1][2] - The stock has more than doubled this year, indicating strong investor confidence, while rival CoreWeave's shares rose 4.4% [2] - Analysts suggest Nebius is well-positioned to attract additional major clients, including hyperscalers and frontier AI labs, as it expands its data center operations [2] Industry Context - Microsoft has highlighted a shortage of AI cloud infrastructure due to rising client demands and is seeking third-party providers to meet this need [3] - Nebius will supply dedicated GPU infrastructure from a new data center in Vineland, New Jersey, starting later this year, which aligns with Microsoft's strategy [4] - The company's core business focuses on providing full-stack AI cloud services built on Nvidia computing, equipping AI developers with necessary tools and services [5]