Nebius Just Signed $46 Billion in AI Cloud Deals With Microsoft and Meta. Can This Stock 10X?

The demand for artificial intelligence (AI) data center capacity has been exceeding supply, and Nebius Group (NASDAQ: NBIS) is one of the companies that's trying to plug this gap. It has been building new data centers at an aggressive pace.

The neocloud infrastructure company operates data centers equipped with powerful graphics processing units (GPUs), renting out their capacity to customers looking to run AI workloads. Yet Nebius isn't just a company that rents out processing power. It also provides access to large language models and inference tools to help customers build and deploy AI applications.

The full-stack nature of Nebius' AI platform, which integrates hardware and software, has made it popular among AI companies and hyperscalers. Not surprisingly, the company has been a beneficiary of the massive investments in AI data center infrastructure, scoring huge contracts with some of the top players in this space.

But will these contracts be enough to make Nebius a 10-bagger stock for those who buy it now?

Image source: Getty Images.

Nebius' hyperscaler deals indicate that it is poised for red-hot growth

Nebius' revenue shot up by 479% last year to $530 million. However, its top line is still poised to grow significantly from there. That's because Nebius has lined up lucrative long-term contracts with Meta Platforms and Microsoft to provide dedicated GPU infrastructure capacity.

The first of Nebius' major deals arrived in September, when it announced a five-year contract with Microsoft worth $17.4 billion to provide "access to dedicated GPU infrastructure capacity." And Microsoft could acquire additional services worth $2 billion as a part of this contract, bringing its total value to $19.4 billion. This contract alone has the potential to significantly boost Nebius' growth. However, there was further good news in store for Nebius shareholders in December when Meta Platforms signed a $3 billion, five-year contract for AI infrastructure capacity.

Nebius, therefore, entered 2026 with an impressive $22.4 billion backlog to fulfill over the next five years. But things were about to get even better for the company. Meta and Nebius extended their agreement this month. The tech giant will now purchase $12 billion worth of dedicated AI infrastructure capacity from Nebius, with deployments set to begin early next year.

What's more, Nebius points out that "Meta has committed to purchase additional available compute capacity across certain upcoming Nebius clusters up to a total of $15 billion over a five-year period." So the latest deal with Meta could reach $27 billion, bringing Nebius' potential backlog to just over $46 billion.

These huge contracts have virtually secured outstanding long-term growth for Nebius. Importantly, the company has been positioning itself to bring enough data center capacity online to fulfill the huge contracts it is sitting on. Management pointed out last month that it plans to exit 2026 with 800 megawatts (MW) to 1,000 MW of connected data center capacity, a big jump from the 170 MW it had at the end of 2025.

However, the new Meta contract means Nebius is now in a position to use the tech giant's funding to accelerate its deployment of new data centers. Also, Nebius has close ties with Nvidia, which has made a significant investment in the neocloud company to help it build 5,000 MW of data centers by 2030.

All this explains why analysts are forecasting massive revenue growth for Nebius.

NBIS Revenue Estimates for Current Fiscal Year data by YCharts.

The stock has multibagger potential

Analysts expect cumulative revenue of $28 billion from Nebius over the next three years. So the company will still have another $18 billion in revenue backlog to fulfill at the end of that time, even assuming it doesn't get any more contracts. But that's unlikely, as it has customers beyond Meta and Microsoft.

The additional $15 billion that Meta has committed to purchase capacity from Nebius is currently allocated to other cloud customers. So don't be surprised to see its backlog rise further, ensuring that Nebius continues to grow at a terrific pace beyond the next couple of years, especially given the anticipated growth in compute demand.

Assuming Nebius' top line grows at even 20% a year in 2029 and 2030, its revenue could reach almost $22 billion by the end of the decade. If Nebius is trading at even 15 times sales at that time, a significant discount to its current price-to-sales ratio of 56, its market cap could jump to $330 billion. That would be more than 10x the current market cap of $29 billion.

So investors looking to buy a growth stock that could make them significantly richer in the long run should take a closer look at Nebius, which has more upside potential despite having risen a remarkable 324% in the past year.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.