Nebius Group (NBIS) has been drawing growing attention from investors as demand for AI and cloud infrastructure continues to surge. Notably, analysts see significant upside ahead, pointing to strong contracted demand, major enterprise deals, and expanding capacity as key drivers of growth. With shares still trading well below long-term potential, NBIS’ average price target imply more than 85% potential upside from current levels. Here are three reasons why Nebius could be setting up for a major move higher.
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For context, Nebius is a Dutch technology company specializing in data center operations and cloud infrastructure.
1. Rising AI Demand
The bullish case for Nebius rests on its strong position in fast-growing cloud and AI infrastructure markets. Its revenue in the first nine months of 2025 shot up by 437% to $302 million. Moreover, Nebius also reduced its adjusted EBITDA by 51% during this period to $80 million. In Q3, revenues grew by 355% year-over-year to $146.1 million.
Looking ahead, the company expects its annual recurring revenue (ARR) to reach $7–$9 billion by the end of next year, driven by a large backlog of contracted demand. The forecast appears well supported, with more than half of the projected ARR already committed over a year in advance.
Nebius is also investing heavily in research and development to upgrade its AI capabilities, particularly in machine learning and data processing. Early customers have responded positively to these improvements.
2. The Deals Power
Another key catalyst for NBIS stock is the strength of its deal pipeline. The company announced multi-billion-dollar deals with Microsoft (MSFT) and Meta (META), highlighting strong demand for its high-performance AI computing services. These agreements show that Nebius can support large enterprise customers and manage complex AI workloads.
As more companies look for flexible, customized AI solutions, demand is rising—and Nebius is well placed to benefit from this trend.
3. Wall Street Stays Bullish
Looking ahead, analysts say that if Nebius continues to improve its technology and attract more customers, it could become a major player in AI by 2026.
Among the bulls, five-star-rated analyst Nehal Chokshi at Northland Securities has the highest price target of $211 for NBIS stock, which implies an upside of over 140% from current levels. Chokshi believes Nebius’ deal with Microsoft reflects the company’s scarcity value and attractive economics. He believes the company’s cost advantages were a key reason it won the contract, highlighting its strong competitive position.
Likewise, four-star-rated analyst Gregory P Miller at Citizens JMP is bullish on NBIS stock with a price target of $175, implying a growth rate of almost 100% from the current level. Miller stated that building large clusters of GPUs could create significant value for Nebius, which works closely with chip giant Nvidia (NVDA). He believes strong demand and limited supply in the AI computing market should help support pricing and drive growth for the company.
Is NBIS a Good Stock to Buy?
According to the Street’s analysts, Nebius stock sports a Strong Buy consensus based on five Buys and one Hold assigned in the last three months. At the same time, average NBIS stock price target of $164.20. This implies a 87.25% upside from the current price.
