In a significant move for the tech industry, Meta Platforms announced plans to allocate between $115 billion and $135 billion for capital expenditures in 2026. This marks an impressive 74% increase from the previous year, indicating Meta”s strong commitment to expanding its technological capabilities.
A substantial portion of this investment is earmarked for Nvidia GPUs, specifically the Blackwell and Rubin models, along with Arm-based Grace CPUs. Meta has confirmed that it will utilize these through its cloud partners, including Nebius.
Nebius, known for offering GPU access on a rental basis, has already established a solid foundation with Meta, having secured a five-year contract worth $3 billion in November 2025. This relationship is poised to deepen as Meta continues to enhance its AI infrastructure.
In addition to its partnership with Meta, Nebius has a significant contract with Microsoft, valued at over $19 billion. The company”s current backlog exceeds $20 billion, suggesting strong revenue potential as demand from major tech firms grows.
Analysts are bullish on Nebius, with BWS Financial reasserting a Buy rating for the stock on February 17, 2026, and setting a price target of $130. Meanwhile, Morgan Stanley has maintained a Hold rating with a price target of $126.
During Nebius” recent Q4 2025 earnings call, management reported that 100% of their AI cloud customers are utilizing Nebius software, which is a strong indicator of its software stack”s effectiveness. The CFO expressed optimism about achieving a 40% margin goal, driven by the increasing demand in the AI cloud sector.
Looking ahead, analysts predict Nebius” revenue could skyrocket from $530 million in 2025 to approximately $3.4 billion in 2026. The company plans to expand its operations from seven data center sites to 16 by the end of 2026, with a target of achieving 800 megawatts to 1 gigawatt of active data center capacity by year-end.
As of February 20, 2026, NBIS stock has experienced substantial growth, gaining around 140% in the past year and trading at $97.80. The stock”s market capitalization currently stands at $25 billion, reflecting strong investor confidence in its future prospects.
