"Nvidia's H200 chips, for instance, have seen Chinese firms place orders for over 2 million units for 2026, exceeding the company's current stock of 700,000. This shortage stems from explosive demand for AI training and inference, which is outpacing production increases at foundries like Taiwan Semiconductor Manufacturing ( ). As a result, providers are negotiating additional output, with work set to begin in the second quarter of 2026."
"Nebius has secured major contracts, including a multi-year deal with Microsoft ( NASDAQ:MSFT ) valued at over $19 billion and a $3 billion partnership with Meta Platforms ( NASDAQ:META ) over five years. It is also expanding capacity from 220 megawatts (MW) to 800 MW and up to 1 gigawatt (GW) of connected power by the end of 2026, with contracted power reaching 2.5 GW."
Nebius Group forecasts up to 1,600% revenue growth by the end of 2026, projecting an annualized run rate of $900 million to $1.1 billion for the end of 2025 and $7 billion to $9 billion by the end of 2026. The company has secured large hyperscaler contracts, including deals with Microsoft and Meta, and is scaling power capacity from 220 MW toward 800 MW and up to 1 GW of connected power, with contracted power at 2.5 GW. The AI chip market faces supply shortages through 2026, with H200 demand outpacing inventory and high-bandwidth memory constrained, prompting rental of older GPUs and negotiations for additional foundry output.
Read at 24/7 Wall St.
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