Shares in Meta Platforms (META) stock are up during Monday’s trading session after the company announced a deal with AI cloud company Nebius. Nebius (NBIS) stock is also up over 10% with the official deal. Per a press release from Nebius, it will provide Meta with $12 billion worth of neocloud capacity as part of its deployment of Nvidia’s Vera Rubin platform, starting in 2027. Meta has also committed to purchasing additional compute capacity up to a total of $15 billion over five years.

Arkady Volozh, founder and CEO of Nebius, said: “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.” Additionally, the agreement between Meta and Nebius has a contract value of up to approximately $27 billion.

Nebius has inked several deals with top tech companies in the past year outside of Meta. Indeed, deals worth billions signed with Microsoft and Nvidia are already underway. With the AI bubble continuing to grow, AI cloud companies like Nebius are surging in value. The company’s shares have also exploded, with NBIS stock up over 40% YTD and 348% since March 2025.

Also Read: 10 Best Performing US Stocks of 2026

Furthermore, Meta is up after reports of layoffs at Meta emerged at the start of the week. Investors appear optimistic about better cost management amid AI investments at Meta, a topic that was heavily argued at the start of this AI surge. The $27 billion deal with Nebius positions Meta as a key player in AI infrastructure, aiming to enhance its technological capabilities significantly.

Meta stock has plenty of room to grow, according to analysts on Wall Street. Estimates mark Meta’s intrinsic value at $730.56, suggesting it is modestly undervalued relative to its current trading price. Most analysts agree on Meta’s growth potential too, with price targets ranging from $800 to $935, and plenty of buy ratings.