Nvidia’s $2B Nebius Stake Drives 57% Gain as Shares Lag Sector
Nvidia's $2 billion investment in Nebius propelled the stock 57% with a $46 billion backlog and plans for 3 GW contracted power end-2026. Nvidia shares now trail the semiconductor sector by the widest margin in over two years, with a 24 forward P/E implying limited downside (~20%) if AI growth slows.
1. Nvidia’s $2 Billion Nebius Investment
In March 2026, Nvidia invested $2 billion in Nebius Group, driving its share price up 57%. Nebius holds a $46 billion backlog from Meta and Microsoft deals and aims to secure 3 GW of contracted power by end-2026.
2. Shares Underperform Semiconductor Sector
Nvidia shares have underperformed the broader semiconductor sector by the largest margin in more than two years, reflecting high valuation risk despite strong sector performance.
3. Downside Risk Appears Capped
Nvidia’s forward P/E multiple stands at 24 against a $4.8 trillion market cap, suggesting downside is capped around 20% if AI build-out decelerates.
4. CoreWeave Reports Earnings and Expansion
CoreWeave reported its latest quarterly earnings while continuing to expand data center capacity to support hyperscale AI workloads, though specific financial details were not disclosed.