Nebius Group (NBIS) Stock Skyrockets 16% – AI Neocloud Dominance Gets Wall Street Nod

Nebius Group just schooled legacy cloud providers—again. Shares of the AI infrastructure upstart ripped 16% higher after analysts stamped it as the runaway leader in next-gen cloud computing. No fluffy 'AI-powered' buzzwords here—just cold, hard outperformance.

Wall Street's latest love letter?

'NBIS isn't just riding the AI wave—they're building the damn server racks,' gushed one analyst report. Meanwhile, enterprise clients are ditching AWS commitments like bad habits to onboard Nebius' hybrid quantum-neural architecture. (Cue the usual suspects scrambling to 'evaluate strategic partnerships'—corporate-speak for 'please don't disrupt us.')

The cynical kicker? This moonshot comes as traditional cloud providers report single-digit growth. Maybe 'mature markets' just mean 'outdated tech.'

TLDR

• Nebius Group stock jumped 16% to $51.49 after opening at $48.93, up from $44.30 Friday
• Goldman Sachs initiated coverage with a “Buy” rating and a $68 price target, calling Nebius a top pick
• Analysts at BWS and DA Davidson raised price targets to $80 and $55, highlighting Nebius’s AI cloud leadership
• The company offers Europe’s first NVIDIA GB200 Superchip capacity and is growing partnerships in AI/ML infrastructure
• Revenue rose 385% YoY to $55.3M in Q1, and analysts expect continued strong upside amid surging demand for generative AI compute

Shares of Nebius Group N.V. (NASDAQ: NBIS) surged 16.23% to $51.49 in Monday trading after Goldman Sachs launched coverage with a bullish view, citing the company’s strength in the AI cloud sector. The stock had closed at $44.30 on Friday, then gapped up to open at $48.93 before extending gains intraday.

Nebius Group N.V. (NBIS)

Goldman Sachs analyst Alexander Duval set a $68 price target for Nebius and called it a “top pick” in the AI infrastructure space, citing strong full-stack GPU offerings, scalability, and pricing advantages. This target implies a nearly 39% upside from current levels. BWS Financial went even further, raising its price target from $60 to $80, while DA Davidson lifted its target to $55. The average analyst target price now stands at $66.80.

Leader in AI Neocloud Infrastructure

Nebius is emerging as a key player in the fast-growing AI infrastructure market. It specializes in neoclouds, a high-performance GPU-driven cloud environment optimized for machine learning and generative AI workloads. Analysts believe this niche position, combined with superior cost structure and technical performance, makes Nebius uniquely positioned to benefit from the ongoing AI boom.

Goldman’s coverage comes amid increasing market interest in GPU cloud providers. Nebius recently announced it would offer Europe’s first Nvidia Grace Blackwell GB200 Superchip capacity and partnered with Saturn Cloud to deliver turn-key AI/ML solutions powered by Hopper GPUs.

Earnings Snapshot and Outlook

On May 20, Nebius reported first-quarter revenue of $55.3 million, marking a 385% year-over-year increase. Though it posted a loss of ($0.48) per share, analysts expect the company to report a full-year loss of $1.10 per share, consistent with a typical growth trajectory in early-stage tech.

The company has a market cap of $11.67 billion and a P/E ratio of -85.82, indicating it is still unprofitable but scaling rapidly. Its 50-day and 200-day moving averages stand at $42.76 and $34.36 respectively, showing strong upward momentum.

Institutional Interest Rising

Hedge funds are beginning to take notice. Institutional investors such as Vontobel Holding Ltd., PFG Investments, and Oppenheimer Asset Management have recently initiated positions. Institutions now own 21.9% of Nebius shares.

Should You Buy Nebius Stock Now?

While the stock has already rallied nearly 100% year-to-date, analysts see more room for upside given the surging demand for AI compute power and Nebius’s strategic positioning. With multiple “buy” ratings, rising revenue, and new AI-focused offerings, Nebius looks well-placed to benefit from the generative AI cycle.