Nebius Group N.V. (NASDAQ: NBIS) shares climbed 3% in early premarket trading Tuesday, recovering from a sharp selloff driven by investor concern over the company’s expanding debt load.
The Amsterdam-based neocloud operator announced Monday that it successfully closed its debt offering, raising $5.75 billion through two series of convertible senior notes.
The two tranches consist of 0.50% convertible senior notes due 2030 and 4.50% convertible senior notes due 2034, issued as part of the company’s broader capital strategy.
The final raise substantially exceeded Nebius’ initial target of $4.5 billion, which was itself revised upward to $5 billion before the offering ultimately closed above that revised figure.
Nebius said the proceeds will be used to expand data center capacity, invest in its full-stack AI cloud platform, and acquire GPUs and other key components needed to support growth.
Despite the premarket rebound, NBIS shares have declined for six straight sessions, shedding a cumulative 24% over that stretch as investors weighed the scale of the company’s new debt liabilities.
Nebius signed a five-year, $12 billion AI infrastructure deal with Meta Platforms and is targeting 800 megawatts to 1 gigawatt of connected power by the end of 2026, with data center campuses planned across Missouri, Pennsylvania, Finland and the UK.
The company has been one of the standout performers in the neocloud sector, gaining 152% year to date, compared to gains of 20% for CoreWeave and 5.4% for IREN over the same period.
Retail sentiment on Stocktwits dipped over the past week and registered as “bearish” on Tuesday, though several traders expressed confidence in the company’s longer-term trajectory.
One trader noted that the conversion price on the bonds sits 45% above current trading levels, adding: “The company wants to convert these bonds to shares so they can stop paying interest on them as fast as possible. Now I’m not saying next week, but I’m an investor not a trader, and I will be adding on any weakness like we are seeing.”
Another trader on the platform argued that the core bull case remains intact, writing: “$NBIS The biggest risks to being long here are the invention of chips better than NVDA’s and oversupply of compute, and neither of those look remotely close to happening.”
With Nebius and CoreWeave both having reported strong quarterly results, market attention is now shifting to IREN Ltd, the third major neocloud operator, which is scheduled to report its quarterly earnings this Thursday.
Analysts expect IREN’s fourth quarter revenue to decline 26% to $140.7 million, with the company projected to post an adjusted loss of $0.46 per share.
CoreWeave delivered revenue growth of 160% to $3.54 billion in its most recent quarter, while Nebius posted sales growth of 454% to $582.3 million, underlining the intense momentum building across the neocloud segment.
