Key Takeaways
- Meta’s 2026 capital spending targets $115B–$135B, marking approximately 74% growth year-over-year
- Nebius serves as an official cloud partner for Meta’s Nvidia GPU deployment strategy
- Contract backlog exceeds $20B with a $3B Meta agreement and $19B+ Microsoft partnership
- Projected revenue surge from $530M (2025) to $3.4B (2026)
- BWS Financial maintains Buy rating at $130 target; Morgan Stanley stays at $126
Meta Platforms recently unveiled its intention to allocate between $115 billion and $135 billion toward capital investments throughout 2026. This represents a remarkable 74% surge from the previous year’s midpoint figure, with substantial portions earmarked for Nvidia’s GPU technology.
The social media giant disclosed plans to acquire “millions of Nvidia Blackwell and Rubin GPUs,” with a portion of this deployment channeled through Nvidia’s established cloud partnership ecosystem. Nebius stands as one of these strategic partners.
This positioning carries significant weight, placing Nebius squarely within Meta’s massive infrastructure investment trajectory.
The company provides on-demand GPU resources—including H100, H200, and Blackwell configurations—available through flexible hourly rental agreements. Additionally, clients can leverage AI models via its proprietary software platform using token-based pricing.
The Meta connection extends beyond future possibilities. Back in November 2025, Meta secured a $3 billion five-year agreement with Nebius. As Meta accelerates its infrastructure buildout, this partnership holds expansion potential.
Contract Backlog Surpasses $20 Billion With Dual Tech Giants
Beyond Meta, Nebius maintains a substantial five-year arrangement with Microsoft valued north of $19 billion. Combined, these commitments drive the total contracted backlog beyond $20 billion—a figure that stands to increase as technology leaders continue aggressive infrastructure investments.
During the fourth quarter 2025 earnings discussion, Morgan Stanley analyst Josh Baer inquired about software attachment rates—specifically, what percentage of compute clients also adopt Nebius software solutions. Management’s response was definitive: 100%. Every AI cloud client utilizes their software infrastructure.
The company’s CFO conveyed strong confidence in achieving the 40% margin objective, noting that robust AI cloud demand would compensate for underperformance in secondary business units.
Scaling Operations and Revenue Projections
Wall Street analysts project Nebius will experience dramatic revenue expansion from $530 million in 2025 to approximately $3.4 billion throughout 2026—representing roughly 540% growth.
Infrastructure expansion plans include scaling from 7 operational data center locations in 2025 to 16 facilities by year-end 2026, while active power capacity jumps from 170 megawatts to a range of 800 megawatts through 1 gigawatt.
BWS Financial reaffirmed its Buy recommendation on February 17, 2026 with a $130 price objective. Morgan Stanley kept its Hold stance on February 13 with a $126 valuation.
NBIS shares changed hands at $97.80 on February 20, 2026, within a 52-week trading band of $18.31 to $141.10 and carrying a market capitalization of $25 billion.
