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Nebius secures $3.5B from Citi amid sector stress, with AI infrastructure spending expected to hit $66B by 2027.

Market News
29 Oct 2026, 10:14 WIB
Seeking Alpha
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Bullish
Nebius secures $3.5B from Citi amid sector stress, with AI infrastructure spending expected to hit $66B by 2027.

Nebius recently secured $3.5 billion in funding from Citi following a $775 million credit facility, demonstrating strong capital access despite challenges in the cloud sector. Gartner forecasts that spending on AI-optimized infrastructure-as-a-service (IaaS) will reach $66 billion by 2027, highlighting significant growth potential. Nebius trades at about 3.8 times its projected 2027 sales, with consensus revenue estimates around $12.2 billion. However, risks remain, including a potential AI credit crisis that could increase refinancing costs, slow deployment of AI technologies, and pressure shareholder dilution.

Nebius shares have seen a notable decline recently, with a 6.97% drop in one day on Pluang. The stock is trading at USD 169.64 as of Oct 29, 2026, 14:01 WIB, with a market cap of $46.34 billion and a 52-week range between $73.87 and $286.69.

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