Key Takeaways
- Meta’s 2026 capital expenditure budget ranges from $115B to $135B, representing approximately 74% growth from the prior year
- The tech giant will acquire “millions of Nvidia Blackwell and Rubin GPUs” and leverage Nvidia’s cloud partner ecosystem — which includes Nebius — for infrastructure rollout
- Nebius has secured a $3B agreement with Meta alongside a massive $19B+ partnership with Microsoft, creating a total backlog exceeding $20B
- Analysts project revenue will skyrocket from $530M in 2025 to $3.4B by year-end 2026
- BWS Financial confirmed its Buy recommendation with a $130 target price on February 17, 2026
Meta Platforms recently announced capital spending plans that caught Wall Street’s attention: between $115 billion and $135 billion allocated for 2026. At the midpoint, this represents a staggering 74% increase versus the previous year’s investment.
The bulk of these funds will flow toward acquiring Nvidia’s latest GPU technology — particularly the Blackwell and Rubin chip architectures, along with Arm-powered Grace CPUs. Meta has confirmed its strategy involves deploying this hardware through Nvidia’s certified cloud partner ecosystem.
Nebius holds a prominent position within that partner network.
The neocloud provider delivers on-demand GPU computing power — spanning H100, H200, and Blackwell configurations — through flexible hourly rental arrangements. Additionally, the company operates a proprietary software platform enabling clients to execute AI workloads via token-based pricing models.
Meta represents more than just a theoretical growth opportunity for Nebius. The social media giant is already an active client. Last November, Meta signed a five-year agreement worth $3 billion with Nebius. This partnership appears poised to expand significantly as Meta accelerates its artificial intelligence infrastructure development.
Beyond Meta, Nebius has locked in Microsoft as another anchor client through a five-year contract valued north of $19 billion. When combined, these commitments push the company’s order backlog past the $20 billion threshold — a figure that may grow substantially as hyperscalers continue aggressive AI investments.
Wall Street Perspectives
BWS Financial reaffirmed its Buy stance on NBIS shares on February 17, 2026, maintaining a $130 price objective.
Morgan Stanley held its position with a Hold rating on February 13, keeping its valuation at $126. During the company’s Q4 2025 results discussion, analyst Josh Baer questioned executives about their software platform and the “attach rate” connecting software sales to infrastructure services.
Management provided clear metrics: every AI cloud client utilizes Nebius software, resulting in a 100% attachment rate across the customer base. There’s no ambiguity in those figures.
The CFO conveyed strong conviction about achieving the company’s 40% margin objective, noting that robust demand within the AI cloud division would more than compensate for weaker performance in ancillary business units.
Projected Expansion Through 2026
Wall Street analysts anticipate Nebius will generate approximately $3.4 billion in revenue for 2026, up dramatically from $530 million in 2025. While aggressive, the existing contract backlog lends credibility to these projections.
Infrastructure expansion plans call for increasing operational data center locations from 7 sites in 2025 to 16 facilities by the conclusion of 2026.
Regarding power capacity, management aims to bring between 800 megawatts and 1 gigawatt of active data center capability online by year-end, compared to 170 MW operational at the end of 2025.
NBIS shares have delivered approximately 140% returns over the trailing twelve months, closing at $97.80 on February 20, 2026, within a 52-week trading band of $18.31 to $141.10.
The company currently commands a market capitalization of $25 billion.
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