Shares of Nebius Group N.V. (NBIS) were popping in Monday's premarket session. The reason? The company just landed what might be one of the juiciest contracts in the white-hot AI infrastructure space. Nebius announced a long-term artificial intelligence infrastructure agreement with Meta Platforms Inc. (META) that could be worth a staggering $27 billion.

Think of it as Nebius becoming a key power supplier for Meta's AI ambitions. The five-year deal will see Nebius provide dedicated AI compute capacity to Meta across multiple locations. The really interesting tech bit is that the deployment will be based on one of the first large-scale implementations of the NVIDIA Vera Rubin platform. That's the chip giant's next-generation infrastructure specifically designed for advanced AI workloads. Nebius expects to start delivering this new capacity in early 2027.

The $27 Billion Breakdown

So, how do you get to $27 billion? The agreement has two main parts. First, there's a base commitment: Nebius will provide about $12 billion worth of dedicated AI infrastructure capacity to Meta over the life of the contract. That's the guaranteed business.

"We are pleased to expand our significant partnership with Meta as part of securing more large, long-term capacity contracts to accelerate the build-out and growth of our core AI cloud business. We will continue to deliver," said Arkady Volozh, founder and CEO of Nebius.

Then, there's the optional part that could make the deal even bigger. Meta has also agreed to purchase additional compute capacity tied to upcoming Nebius clusters. These purchases could reach up to $15 billion over five years. Here's the clever structure: Nebius plans to sell capacity from these new clusters to other AI cloud customers first. Meta essentially gets first dibs on any leftover, unused capacity. It's a way for Meta to secure optionality and for Nebius to maximize the use of its infrastructure.

Building on a Foundation of Chips and Cash

This mega-deal didn't come out of nowhere. It builds on some serious momentum for Nebius. Just a few days before this announcement, Nvidia Corp (NVDA) made a significant $2 billion investment in the company. This partnership builds on Nebius's ongoing deployment of Nvidia infrastructure. The company has ambitious plans, aiming to expand its total AI factory capacity to over 5 gigawatts by the end of 2030. That's a lot of computing power.

What the Charts and Analysts Are Saying

Investors have clearly been betting on Nebius's story. Let's look at the tape. The stock is currently trading 9.6% above its 20-day simple moving average and 8.1% above its 100-day simple moving average, showing strength over both the short and longer term. Over the past 12 months, shares have skyrocketed 299.26% and are trading much closer to their 52-week highs than their lows.

On the technical indicators: the Relative Strength Index (RSI) sits at 60.98, which is considered neutral territory—not overbought, not oversold. Meanwhile, the MACD is at 2.9490, above its signal line of 1.2737, which typically indicates bullish momentum. So you have a neutral RSI paired with a bullish MACD, suggesting mixed but generally positive momentum signals.

• Key Resistance: $135.00
• Key Support: N/A

The analyst community is largely bullish. The stock carries a consensus Buy rating with an average price target of $150.63. Recent analyst actions include:

• Compass Point: Initiated coverage with a Buy rating and a $150.00 price target (Feb. 18)
• BWS Financial: Maintained a Buy rating and a $130.00 price target (Feb. 17)
• Morgan Stanley: Initiated coverage with an Equal-Weight rating and a $126.00 price target (Jan. 15)

The Valuation Picture

It's worth noting that all this excitement comes at a price. A common market data analysis for Nebius Group reveals a classic setup for a high-flying stock. The momentum score is an extremely high 97.52, confirming the stock is dramatically outperforming the broader market. However, the value score is a very low 3.28, indicating the stock is trading at a significant premium relative to its peers. The signal here is clear: the trend is powerfully strong, but the stock is priced for near-perfect execution. Investors riding this wave might want to consider using tight risk management strategies.

The Bottom Line: Nebius Group shares were up 14.67% at $129.52 during premarket trading on Monday. The company has transformed from an AI infrastructure player into a central supplier for one of the world's biggest tech companies, locking in a deal that provides years of visible revenue and cements its position in the AI arms race. The market is cheering, but as always with high-flyers, the valuation asks a lot of the future.