Nebius Secures $12 Billion in AI Customer Commitments

Key Takeaways

• Nebius has secured more than $12 billion in customer commitments, including multiyear agreements with Databricks and Snowflake, and forecasts 2027 revenue of $12 billion to $13 billion.
• Nebius’s growth plans face data-center delays and heavy capital needs, including expected 2026 spending of $27 billion.
• Applied Materials reported record fiscal 2026 revenue of $34.446 billion and forecast first-quarter fiscal 2027 revenue of $10.6 billion to $11.6 billion.
• NVIDIA’s fiscal Q2 2027 data-center revenue rose 117% to $89.02 billion; it forecasts $108 billion in third-quarter revenue, while supply and memory costs remain risks.
• Anthropic’s planned IPO reportedly drew orders equal to six times available shares, with a combined IPO and private-placement fundraising target of $90.4 billion and a targeted $1.4 trillion valuation.
• Nvidia has pledged about $10 billion toward Anthropic shares in a private placement; separate coverage discusses questions over Nvidia’s planned $12.9 billion Hugging Face acquisition and open-source support.
• Xero lifted its FY27 revenue guidance and approved a buyback of up to A$1 billion, while SoundHound raised its 2026 revenue forecast to a $255 million midpoint.
• SEMI forecasts the semiconductor equipment and materials market at $165.9 billion in 2026 and $229.5 billion in 2028; Entegris, Ultra Clean Holdings and FormFactor are identified as possible beneficiaries.
• Australia’s non-enforceable AI workplace guidelines call for worker involvement, skills development, accountability and regular safety and fairness checks.
• BIM and the University of Texas at Arlington plan an AI for Business master’s in India beginning August 2027; Aeluma reports expanding AI datacom activity but expects product ramps from 2028.

Nebius sees strong AI cloud growth but faces major expansion challenges

Nebius customers have committed more than $12 billion in contract value since the start of the third quarter, including multiyear deals with Databricks, Datadog and Snowflake. Adjusted EBITDA reached $465.8 million, and customer prepayments cover more than 100% of capital costs tied to newly contracted capacity. Nebius expects 2026 revenue of $3 billion to $3.2 billion, with data center delays narrowing its earlier forecast, and projects 2027 revenue of $12 billion to $13 billion. It also expects large capital spending, including $27 billion in 2026, while infrastructure delays remain a risk.

Applied Materials beats estimates as AI demand lifts revenue outlook

Applied Materials reported record fourth-quarter fiscal 2026 revenue of $10.409 billion, up 53% from a year earlier, and net income of $2.718 billion, up 43%. Its Semiconductor Systems revenue rose 64% to $7.996 billion, with record sales for DRAM and advanced packaging. The company forecast first-quarter fiscal 2027 revenue of $10.6 billion to $11.6 billion, above analyst expectations, and adjusted earnings per share of $4.35, plus or minus $0.20. For fiscal 2026, revenue reached a record $34.446 billion, marking seven straight years of growth.

NVIDIA faces strong AI demand as data center growth continues

NVIDIA's data center business generated a record $89.02 billion in the second quarter of fiscal 2027, up 117% from a year earlier. The article says continued spending by cloud providers, AI companies, businesses and governments could support growth in the third quarter. NVIDIA forecast third-quarter revenue of $108 billion, plus or minus 2%, and expects its Vera Rubin platform to make up about 20% of data center revenue. Supply limits and higher memory costs remain concerns, while the Zacks Consensus Estimate for data center revenue is $101.24 billion.

Nebius expands AI contracts as it targets major revenue growth

Nebius customers have committed more than $12 billion in contract value since the start of the third quarter, including multiyear agreements with Databricks, Datadog and Snowflake. Adjusted EBITDA reached $465.8 million, compared with a loss of $5.2 million a year earlier, and customer prepayments cover more than 100% of capital costs for newly contracted capacity. The company forecasts 2026 revenue of $3 billion to $3.2 billion and 2027 revenue of $12 billion to $13 billion. Data center delays and substantial capital needs remain challenges to its growth plans.

Three semiconductor equipment stocks poised to benefit from AI investment

SEMI expects the global semiconductor manufacturing equipment and materials market to reach $165.9 billion in 2026, a 23.2% increase from 2025, and $229.5 billion in 2028. The article highlights Entegris, Ultra Clean Holdings and FormFactor as stocks that could benefit from investment in advanced logic, high-bandwidth memory, testing and packaging. Entegris reported improved margins in the third quarter of 2026 and forecast fourth-quarter revenue of $1.025 billion to $1.055 billion. It also cut its expected 2026 capital spending to about $200 million from an earlier plan of $250 million.

Three AI Stocks Show Strength During Market Selloff

The AI stock market has seen sharp swings, raising investor concerns about high valuations and company spending. Arista Networks, Zeta Global and Littelfuse have held up better than many peers, with strong earnings trends and analyst revisions. Arista reported third-quarter revenue of $3.66 billion, up 58.5%, and expects AI-related revenue to reach about $7 billion in 2027. Zeta Global reported third-quarter revenue of $493 million, up 46%, and raised its full-year revenue outlook to about $1.86 billion. The article says all three companies offer different ways to invest in the AI boom, though the supplied text ends before giving further details on Littelfuse.

Anthropic IPO Orders Reach Six Times the Shares on Offer

Investor orders for Anthropic PBC’s planned IPO reportedly reached about six times the number of shares available. The company and its co-founders plan to raise up to $64.4 billion through the IPO and $26 billion in a private placement, for a combined $90.4 billion. Anthropic is seeking a fully diluted valuation of about $1.4 trillion, and its annualized revenue run rate reached $81 billion by October 31. Goldman Sachs and Morgan Stanley lead the offering, and the shares are expected to trade on Nasdaq under the ticker ANT. Existing backers may receive priority in share allocations, while Nvidia has pledged to buy about $10 billion in Anthropic stock through the private placement.

Anthropic IPO Draws Orders for Six Times the Shares Available

Investor orders for Anthropic PBC’s planned IPO reportedly reached about six times the number of shares available. Anthropic and its co-founders aim to raise up to $64.4 billion in the IPO, plus $26 billion in a private placement, making the $90.4 billion total larger than SpaceX’s market debut. The company reported an annualized revenue run rate of $81 billion as of October 31, up from $71 billion in September and $65 billion in July. Goldman Sachs and Morgan Stanley are leading the offering, and the shares are slated to trade on the Nasdaq Global Select Market under ANT. Anthropic aims for a fully diluted valuation of about $1.4 trillion, while current backers are expected to receive priority in share allocations.

BIM and University of Texas at Arlington Launch AI Business Master’s

Bharathidasan Institute of Management and the University of Texas at Arlington have announced a Master of Science in Artificial Intelligence for Business for working professionals in India. The two-year programme will begin in August 2027 with 25 students, and tuition is expected to be about $27,000. Classes will take place at the IIT-Madras Research Park in Chennai in a hybrid format, with UTA faculty teaching on campus for about a week per course and other classes held online. The curriculum will match the programme at UTA’s Arlington campus. Admissions will consider factors such as undergraduate GPA, course difficulty, mathematics experience and work experience.

Aeluma Invests in Commercialization as AI Datacom Growth Nears

Aeluma, Inc. reported Q1 FY2027 revenue of $568,000 and a GAAP net loss of $3.8 million as it increased investment in commercialization. The company said activity among AI datacom customers is expanding. It anticipates product ramps beginning in 2028. A proposed CHIPS award remains under negotiation.

Australia urges workers to share in AI productivity gains

After job losses at Qantas, Canva and Australia’s big banks, Employment Minister Amanda Rishworth announced guidelines for workplaces adopting AI. The government advises employers to involve workers, redesign jobs and build skills. It also calls for clear accountability and regular checks to make sure AI is safe and fair. Labor says AI can benefit businesses and workers, but the guidelines are not enforceable.

Nvidia scandal could cool enthusiasm for artificial intelligence

Nvidia’s public face, Huang, stepped down Thursday after reports of extramarital affairs, including one with a suspected Chinese spy. The company dominates the market for computer chips used to train and run AI models. The article says the scandal may reduce excitement about AI. In March, Huang predicted Nvidia would be grappling with a …

Xero raises forecast and launches A$1 billion share buyback

Xero lifted its full-year outlook and approved an on-market share buyback of up to A$1 billion as revenue growth and AI-enabled products supported confidence in its future. First-half FY27 revenue reached NZ$1.7 billion, up 46% from the year-earlier period, while adjusted EBITDA was NZ$362 million. The company raised its FY27 operating revenue guidance to NZ$3.77 billion to NZ$3.83 billion and its FY28 revenue goal to more than NZ$4.6 billion. Xero says it is using AI and automation to improve accounting workflows and customer productivity, and shares rose to a two-month high after the results.

SoundHound AI shares plunge as analysts see room for a rebound

SoundHound AI shares had lost nearly 60% of their value in 2026, but Wall Street analysts see a possible recovery. The median 12-month price target of $10 suggests a potential 156% gain, and six of seven analysts covering the stock rate it a buy. SoundHound reported Q3 revenue of $62.4 million on Nov. 5, up 48.5% from a year earlier, and raised its 2026 revenue forecast to $255 million at the midpoint. The company expects 2027 revenue of $375 million and says its LivePerson acquisition could bring $120 million in annual cost savings in 2027, with $80 million in cost-saving actions starting in 2026.

McKinsey proposes AI that learns how CEOs make decisions

McKinsey describes an “executive AI” designed to make a leader’s expertise available across an organization without replacing human judgment. It would use context, memory and a system of record built around knowledge graphs of the leader’s decisions, people, commitments and signals. The researchers say companies can keep strategy decks and decision memos when a CEO leaves, but often lose the reasoning behind thousands of decisions. McKinsey outlines five roles for the AI, including focusing the leader’s attention, capturing hidden knowledge, supporting real-time decisions, testing perspectives and reviewing important decisions afterward.

Hugging Face CEO vows to back open source AI after Huang’s exit

Hugging Face CEO Clément Delangue said the company will keep supporting open-source AI after Jensen Huang resigned as Nvidia CEO. Delangue called Huang’s departure a “really sad day” in a November 12 post on X. He said Hugging Face would continue making AI models accessible and would not slow its work because of leadership changes. Huang had strongly supported open-source and open-weight AI models, raising questions about Nvidia’s planned $12.9 billion acquisition of Hugging Face and the future of its open-source AI efforts.

Sources

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• Can Nebius Sustain 571% Revenue Growth Beyond Its Q3 AI Cloud Boom?
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• AI Trade Barometer: Anthropic’s IPO Is Reportedly Six-Times Oversubscribed
• AI Trade Barometer: Anthropic’s IPO Is Reportedly Six-Times Oversubscribed
• BIM, Texas university to offer course on AI in Business from next year
• ALMU: Commercialization investment rises as AI datacom ramps approach from 2028
• AI productivity gains need to be shared
• Fallout From the Nvidia Scandal May Dampen Exuberance Around AI
• Tech Bytes: Xero lifts outlook and launches A$1 billion buyback as AI investment starts to pay off
• SoundHound AI Stock Is Down Almost 60% in 2026, but Wall Street Thinks It Can Soar 155% By the End of 2027. Here’s Why It Could Be One of the Best Buys Amid the Tech Sell-Off.
• McKinsey Has a New Idea for AI: Teach It How Your CEO Makes Decisions
• What would Jensen Huang’s Nvidia exit mean for open-source AI? Hugging Face CEO responds