Nvidia disclosed a 9.3% equity stake in Amsterdam-based neocloud Nebius on Tuesday, lifting its shares 7% in premarket trading, while Mizuho argued Oracle's 38% year-to-date decline has created a rare buying opportunity in enterprise cloud infrastructure.
Nvidia has disclosed a 9.3% stake in Nebius, an Amsterdam-based neocloud provider, sending the company's shares up 7% in premarket trading on Tuesday and reinforcing the chip giant's pattern of equity participation in AI infrastructure firms.
Nebius, listed on the Nasdaq, has emerged as one of Europe's leading providers of AI compute. The company's market capitalization stood at $46 billion as of Tuesday morning, and its stock has gained nearly 250% over the past 12 months, reflecting sustained demand for AI infrastructure capacity.
Nvidia had previously announced a $2 billion investment in the Dutch company. Under the terms of that arrangement, the two companies are collaborating on AI infrastructure deployment, fleet management, inference, and AI factory design and support.
The Nvidia stake disclosure comes amid a string of high-profile commercial agreements for Nebius. In March, Meta signed a long-term deal to spend up to $27 billion on the company's AI infrastructure. The previous week, Nebius said it had raised $775 million in its first senior secured debt facility, backed by deployed GPU infrastructure and contracted cash flows from an agreement with an investment-grade customer.
Freedom Capital Markets upgraded Nebius to a buy rating on Monday, calling the debt raise a "positive catalyst" for the company.
Nvidia's investment in Nebius is part of a broader pattern of strategic equity positions the chip maker has taken in AI companies. Nvidia contributed $30 billion to the $110 billion funding round that OpenAI announced in March, and participated in Anthropic's $30 billion raise in February.
Separately, Wall Street attention is also turning to Oracle, which has shed roughly 38% of its value year to date, with analysts at Mizuho arguing the stock now represents one of the more compelling risk-reward setups in the enterprise technology sector.
Mizuho reiterated its outperform rating on Oracle and maintained a $320 price target, which implies 164% upside from where shares closed on Monday. The bank noted that Oracle currently trades at 14 times its 2027 non-GAAP earnings — a discount to every comparable infrastructure peer, despite what analyst Siti Panigrahi described as above-peer growth.
"ORCL shares, trading at multi-year lows, reflects one of the most attractive risk/reward profiles in our coverage," Panigrahi said Tuesday in a note to clients. "Shares trade … [at a discount] to every comparable infrastructure peer despite above-peer growth, even as execution strengthens across capacity conversion, [remaining performance obligation] quality, and financing visibility."
The sell-off in Oracle shares has been driven in part by the company's rising debt load and a series of credit downgrades, which have prompted investors to rotate out of the name. Mizuho identified several potential catalysts for a recovery, including continued capacity monetization through fiscal years 2027 and 2028, a reduction in financing uncertainty, early signs of applications reacceleration, and a potential wave of credit re-ratings.
Oracle's bearish price action has not shifted the broader analyst consensus. Of the 44 analysts who cover the stock, 35 carry a buy or strong buy rating, according to LSEG data.
Together, the developments underscore the divergent trajectories within enterprise cloud and AI infrastructure: newer, purpose-built AI compute providers like Nebius are attracting both strategic investors and long-term commercial partners, while established players like Oracle face pressure to demonstrate that their infrastructure buildout translates into sustained earnings growth — a dynamic analysts say the market will scrutinize closely through the next two fiscal years.
Jay Goldberg is a staff writer at TechEchelon covering technology, markets, and policy. He files the breaking news and deal coverage that move the publication's core desks.
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