Dutch neocloud firm Nebius Group (NBIS) saw its stock surge 7.4% intraday on Sept. 24 after BNP Paribas analysts upgraded it from “Neutral” to “Outperform” and hiked the price target from $260 to $399, which reflects a 63.9% upside from the current level. The firm mainly cited Nebius’ “meaningfully improved” outlook as the reason for this upgrade.
The neocloud provider, which has Nvidia (NVDA) as a passive stakeholder, has been rapidly expanding its AI cloud infrastructure as it faces strong demand for cloud services. For instance, the company closed a long-term cloud agreement with Meta Platforms (META) in March and announced a $10 billion expansion to build an artificial intelligence (AI) factory in Finland.
Moreover, the company has begun validating its first full Nvidia Vera Rubin NVL72 rack at its Finland data center, positioning itself among the earliest AI cloud providers to achieve that milestone. After a stellar Q2 earnings report, Nebius announced that it will raise pay-as-you-go prices for leasing selected Nvidia chips from Oct. 1, likely as a strategy to stay competitive with CoreWeave (CRWV).
Amid the current optimism around Nebius, BNP Paribas analysts believe Nebius could approach $22 billion in annual recurring revenue exiting 2027.
About Nebius Stock
Nebius Group is a technology company that builds and operates AI-focused cloud infrastructure for developers and enterprises worldwide. Headquartered in Amsterdam, the Netherlands, Nebius runs a global, multi-tenant cloud purpose-built for artificial intelligence workloads, with data centers and co-location sites across Europe, the U.S., and other regions.
Nebius provides large-scale GPU clusters, cloud services, and developer tools through its Nebius AI platform, serving customers in sectors such as healthcare, financial services, robotics, and media. The company has a market capitalization of $66.19 billion.
Nebius’ stock has risen 124% over the past 52 weeks as investors priced in explosive AI-infrastructure demand. Over the past six months, the shares have gained 139%. It reached a 52-week high of $299.86 on June 22 but is down 20% from that level.
After this massive surge, NBIS stock is trading at a significant premium to its peers. Its forward-adjusted price-to-sales (P/S) ratio is 20.01x, compared to the industry average of 3.44x.
Nebius Reported Strong Q2 Earnings as AI Cloud Business Accelerated
Nebius reported its best commercial quarter in Q2, as the company closed four landmark deals for its AI cloud business, for an average total contract value (TCV) of more than $1 billion each. Average yield during the quarter was more than $20 million per megawatt.
Nebius’ revenue increased by 454% year-over-year (YoY) to $582.30 million, while adjusted EBITDA climbed from a loss of $21 million to earnings of $236.20 million. Its adjusted net loss decreased by 64% YoY to $33.20 million.
However, Wall Street analysts have mixed feelings about Nebius’ future earnings. For the current fiscal year, loss per share is projected to increase significantly to $3.76, then improve 20.2% to $3 next fiscal year. Moreover, analysts expect the company’s loss per share to increase by 43.6% YoY to $0.56 for the current quarter.
What Do Analysts Think About NBIS Stock?
In addition to the upgrade from BNP Paribas analysts, Nebius has had an interesting month in Wall Street analyst ratings. First, analysts at Rothschild Redburn initiated coverage of NBIS stock with a “Sell” rating and a mere $84 price target. Analyst Alex Haissl sees significant downside risk in the stock, contrary to other analysts' projections. The analyst believes that although the equity story for generative AI infrastructure remains strongly bullish, credit markets are starting to price in risks that equities are largely overlooking.
Truist Securities analysts, meanwhile, initiated coverage of Nebius with a “Buy” rating and a $355 price target. The firm sees Nebius as a chance to back a fast-growing, AI-native hyperscaler that is still expanding its infrastructure base. Truist Securities analysts consider consensus 2027 annual recurring revenue estimates conservative in light of recent price increases.
Nebius has become a popular name on Wall Street in a short time, with analysts awarding it a consensus “Moderate Buy” rating. Of the 19 analysts rating NBIS stock, a majority of 12 analysts have rated it a “Strong Buy,” while six analysts gave a "Hold" rating, and only one analyst rated it as “Strong Sell.” The consensus price target of $289.69 represents a 21% upside from current levels. Moreover, the Street-high price target of $410 indicates a 71% upside.
