Nebius’ (NBIS) shares climbed by over 21% on Wednesday afternoon following the AI cloud company’s Q1 2026 earnings that surpassed expectations on Wall Street. Goldman Sachs (GS) issued a bullish call following the results but wants more details on several areas, including how higher prices for graphics processing units (GPUs) can further benefit the Amsterdam-based CoreWeave (CRWV) rival.
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Trade CRWV with leverageGoldman Backs Nebius But Wants More Answers
Responding to the results, Goldman Sachs analyst Alexandar Duval reaffirmed his Buy rating and raised his price target by 28% from $160 to $205, implying about 5% downside in the months ahead. Duval noted that Nebius met all of its contracted capacity obligations to customers during the quarter.
This is even as Nebius said it is now aiming to reach about four gigawatts of contracted power by the end of this year, compared to its earlier target of three gigawatts. The neocloud company is looking to grow its annual recurring revenue to between $7 billion and $9 billion by the end of 2026.
Nonetheless, Duval wants more clarity in several areas:
- The state of current demand for Nebius’ core AI business and whether new customers were onboarded during the quarter
- Nebius’ timeline for when it expects to convert its expanded contracted power to active power
- How the AI cloud company’s plans to boost its contracted power will change its capital expenditure and how it funds its expansion
Is NBIS Stock a Buy or Sell?
Across Wall Street, analysts continue to consider Nebius’ shares a Strong Buy based on their consensus rating. This is based on eight Buys and two Holds issued over the past three months.
However, the average NBIS price target of $183.22 suggests more than 14% downside risk from current trading levels.
