Nebius shares fell 6.0% in pre-market trading after the company announced plans to raise $4.50 billion through a private offering of convertible senior notes to qualified institutional buyers under Rule 144A.
The offering is structured as $2.75 billion of notes due 2030 and $1.75 billion of notes due 2034, with proceeds designated for data center construction and GPU infrastructure expansion. The announcement follows a sharp rally in Nebius stock, which had surged roughly 39% over the prior week amid strong Q2 2026 results.
Revenue for Q2 2026 reached $582.3 million, a 454% year-over-year increase and well above Wall Street estimates. The company’s rapid growth has drawn attention to its capital needs, particularly for scaling AI infrastructure.
Analysts remain divided on the stock’s outlook. DA Davidson raised its price target to $250 from $175 but maintained a Neutral rating, noting the stock was trading above the revised target. BofA Securities, however, kept a Buy rating with a $310 price target, citing strong GPU pricing dynamics and resilient demand from hyperscalers and AI labs.
The decline echoes a prior convertible offering in March 2026, which triggered a roughly 10% single-session drop due to dilution concerns. Broader markets showed mixed performance, with the Nasdaq down 0.2% and the S&P 500 up 0.1%.
