Nebius (NBIS) stock was up about 3.1% on Wednesday, at the time of writing, as the artificial intelligence (AI) infrastructure company scored a bullish rating from Citizens JMP. Notably, Citizens JMP analyst Gregory Miller initiated coverage of the neocloud company with a Buy rating and a price target of $175. Citizens JMP assigned Buy ratings to five companies that started as Bitcoin (BTC-USD) miners, stating that they provide “critically-scarce” power supply for high performance compute and AI.
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Citizens JMP Is Bullish on Nebius Stock
Miller believes that the deployment of graphics processing unit (GPU) clusters presents an opportunity to “unlock significant value” for Nebius, which is backed by chip giant Nvidia (NVDA). He expects the company to gain from strong pricing trends with a continued supply/demand imbalance. With large-scale GPU clusters deployed across Europe and the U.S., Nebius offers a full-stack cloud platform.
In particular, the 4-star analyst highlighted the recently signed $17.4 billion GPU-as-a-Service (GPUaaS) contract with Microsoft (MSFT) and the $3 billion deal with social media company Meta Platforms (META). Miller noted that these major deals reflect that Nebius is capable of becoming a major provider of AI-based services for many types of businesses, not just for large-scale customers.
Miller pointed out that Nebius’ separation from Russian tech giant Yandex (YNDX) in July 2024 cut all its ties with the operations in the country. He added that Microsoft’s and Meta Platforms’ willingness to deploy critical chip tech in Nebius data centers reflects that the company’s ties with Russia are considered to be “sufficiently cut for security purposes.”
Is Nebius Stock a Good Buy?
Currently, Wall Street has a Strong Buy consensus rating on Nebius Group based on four Buys and one Hold recommendation. The average NBIS stock price target of $161.50 indicates 68.6% upside potential.
