Nebius Group extended its winning streak to a third consecutive day on Tuesday, jumping 18.78 percent to finish at $216.92 apiece, after Nvidia Corp. helped boost investor confidence in the company following its acquisition of a 9.3 percent stake.
The purchase followed the two companies’ investment and partnership announcement earlier this year, under which they will collaborate on developing and deploying next-generation hyperscale cloud for the AI market.
Nvidia also invested $2 billion in Nebius Group NV (NASDAQ:NBIS), reflecting its confidence in the latter’s business and unique depth of engineering expertise across the full AI technology stack.
For illustration purposes only. Photo by Brett Sayles on Pexels
AI Factory Design Partnership
Under the terms of the partnership, Nebius Group NV (NASDAQ:NBIS) and Nvidia will collaborate on AI factory design and support, including access to partner design material, design review processes and acceptance, early samples and system software support, bring-up support, and regular system partner business and technical reviews.
They also aim to create a best-in-class inference and agentic AI stack for developers and enterprises with Nvidia’s latest software technologies, optimized models and libraries, and deploy multiple generation of the latter’s infrastructure across Nebius’s platform through early adoption of NVIDIA computing architectures, including the Rubin platform, Vera CPUs and BlueField storage systems.
The partnership will also deploy Nvidia’s latest GPU health monitoring and software recommendations to help optimize Nebius Group NV’s (NASDAQ:NBIS) holistic fleet health.
“AI is at another inflection point—agentic AI, driving incredible compute demand and accelerating infrastructure buildout,” Nvidia CEO Jensen Huang said earlier
“Nebius is building an AI cloud designed for the agentic era, fully integrated from silicon to software and powered by NVIDIA’s next-generation accelerated compute. Together, we are scaling the cloud to meet the surging global demand for intelligence,” he said.
Hedge Fund Ownership Improves
Nebius Group’s hedge fund popularity, based on data by Insider Monkey
Nvidia is not the only investor becoming more bullish on Nebius Group NV (NASDAQ:NBIS).
Based on data by Insider Monkey, 60 hedge funds held positions in the company as of the end of the first quarter, marking a jump from 54 in the quarter prior.
More importantly, their combined positions more than doubled to $2.36 billion from $1.06 billion quarter-on-quarter, signaling that institutional investors were not only adding new positions but materially increasing their exposure to the stock.
Zevenbergen Capital Investments remained its top hedge fund investor as of July 20, 2026, owning a $6.2 million stake in its shares, while Ardsley Partners followed with a $1.9 million investment.
While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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