Nebius Group (NBIS) shares surged 5.05% in pre-market trading on Tuesday, following the announcement of a significant deal with Meta Platforms and the release of its third-quarter financial results. The AI infrastructure company's stock price movement reflects a mix of positive developments and some concerns.

The primary driver of the stock's rise appears to be Nebius's new agreement with Meta, valued at approximately $3 billion over five years, to deliver AI infrastructure. This deal underscores the growing demand for high-performance computing power necessary for AI models and marks Nebius's second major contract with a tech giant, following its $17.4 billion agreement with Microsoft in September.

Nebius reported a substantial increase in revenue for the third quarter, with a 355% year-over-year jump to $146.1 million. However, this figure fell short of analyst expectations of $155.1 million. The company's ambitious outlook, targeting $7-9 billion in annualized run-rate revenue by the end of 2026, seems to have offset concerns about the missed estimates. Nebius also announced plans to implement an at-the-market equity program for up to 25 million Class A shares, signaling potential future growth and expansion.

While the pre-market surge reflects investor optimism, it's worth noting that Nebius faces challenges, including widening losses and increased capital expenditures. The company's ability to manage its growth and meet its ambitious targets will likely be key factors for investors to watch in the coming quarters.