Nebius (NBIS) stock has rallied about 88% year-to-date, driven by strong demand for cloud infrastructure amid the ongoing AI wave. While most Wall Street analysts remain bullish and see further upside, Wolfe Research analyst Arsenije Matovic initiated coverage of Nebius stock with a Hold rating. Let’s look at the reasons for the analyst’s cautious stance on the AI infrastructure stock.
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Trade NBIS with leverageWolfe Analyst Is Cautious on NBIS Stock
Matovic stated that he initiated coverage of Nebius stock with a fair value range of $80 to $170 based on 4x to 8x FY27 EBITDA (earnings before interest, taxes, depreciation, and amortization).
The analyst acknowledged that the strength in demand for Nebius’ cloud infrastructure is clear and “de-risked,” especially following the company’s deals with Microsoft (MSFT) and Meta Platforms (META). Notably, Nebius entered into a $27 billion long-term AI infrastructure supply agreement with Meta Platforms, which includes one of the first large-scale deployments of the Nvidia (NVDA) Vera Rubin platform. In September 2025, the company signed an AI infrastructure deal worth up to $19.4 billion with Microsoft.
Despite strong demand, Matovic has a neutral stance on Nebius as he is concerned about the execution and financing of planned projects, which he thinks “still needs to be demonstrated.”
Is NBIS a Good Stock to Buy?
With nine Buys and two Holds, Wall Street has a Strong Buy consensus rating on Nebius stock. The average NBIS stock price target of $167.70 indicates about 7% upside potential.
