Nebius Secures $775M in Debt Backed by AI Chips and Client Contracts as Market Awaits Alphabet’s Verdict
Published on 07/19/2026 at 09:41 | Redaktion boerse-global.de
Nebius Group has turned to secured debt rather than equity to fund its next wave of AI infrastructure, closing a $775 million credit facility on July 10 that uses GPU hardware and customer cash flows as collateral. The seven-year loan, led by MUFG and syndicated among ten banks including Bank of America, Deutsche Bank, Goldman Sachs and Morgan Stanley, carries an interest rate of SOFR plus 2.50 percentage points and matures on October 31, 2030. The facility was oversubscribed, signalling that lenders see value in the underlying assets even as the broader AI sector faces fresh scrutiny.
The move comes as Nebius’s stock has been under severe pressure. Over the past 30 days the shares have shed 36.35 percent, and the seven-day slide stood at 19.19 percent as of Friday’s close. The stock bounced 3.62 percent on the final day of the week to €155.52, but that still leaves it 40.41 percent below its 52-week high of €261.00. The Relative Strength Index of 37.4 suggests oversold conditions, while the annualised 30-day volatility remains above 104 percent — a reminder that sharp swings in either direction are the norm.
The sell-off was fuelled by worries that Meta may reduce its reliance on external cloud providers through its own Meta Compute service, a fear that also hammered CoreWeave, which lost roughly 35 percent of its value over the same period. Insider transactions have added to the unease: reporting parties recorded 33 trades worth a combined $27.8 million over the past 90 days, according to U.S. regulatory filings.
Nebius, however, is betting that its long-term contracts with hyperscalers such as Microsoft and Meta — representing more than $40 billion in committed revenue — can be turned into dependable, bankable cash flows. The new credit line is secured by GPU infrastructure already deployed and by payment streams from an investment-grade client. Chief Operating Officer Ophir Nave described the structure as part of a “disciplined, diversified approach” to the company’s capital stack. Nebius plans to extend the same financing model to a broader portion of its contracted backlog, replacing the heavy reliance on equity issuance that characterised the earlier AI boom.
Should investors sell immediately? Or is it worth buying Nebius?
That capital-intensive growth is evident in the first-quarter 2026 numbers. Revenue surged 684 percent year-on-year to $399 million, and adjusted EBITDA reached $129.5 million. The reported net income of $621.2 million, however, was flattered by a $780.6 million valuation gain on investments; on an adjusted basis the company posted a net loss of $100.3 million. Capital expenditure rocketed 355 percent to $2.47 billion, underlining how much cash the infrastructure buildout consumes.
Valuation remains a fiercely contested question. Nebius trades at a price-to-earnings ratio of about 61.9, more than double the software sector average of 28.6. Simply Wall St analysts peg a fair-value P/E at 70.1, suggesting the stock could be undervalued by as much as 28 percent in an optimistic scenario, while critics argue it could be overvalued by up to 48 percent. The central risk is whether Nebius can convert its enormous capital spending into sustainable earnings.
The coming days will offer a critical test for the entire AI infrastructure thesis. Alphabet is scheduled to report earnings on July 23, and its commentary on 2026 capital expenditure plans is expected to ripple far beyond its own shares. If the search giant confirms high or rising investment levels, that would validate the demand assumptions underpinning Nebius’s secured lending model. A signal of spending restraint, on the other hand, could send the stock sliding toward its 200-day moving average of €119.28 — a further 23 percent decline from Friday’s close.
Nebius at a turning point? This analysis reveals what investors need to know now.
Investor Jim Cramer, speaking on July 16, sounded cautious despite calling Nebius a “very good business.” He saw the entry point as unfavourable when the stock was already 42 percent off its high, and pegged a technical support zone between $122 and $137. The loan gives Nebius financial breathing room without diluting existing shareholders, but the real test will be whether the company can turn its GPU clusters into steady cash flows before the next wave of anxiety over tech megacap spending sweeps through the market.
Ad
Nebius Stock: New Analysis - 19 July
Fresh Nebius information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
