Nebius Group (NBIS) stock jumped over 17% on Monday. The upside came after a Top-rated Goldman Sachs analyst, Alexander Duval, initiated coverage with a Buy rating and a $68 price target, implying nearly 45% upside. Despite recent gains, Duval believes NBIS stock is undervalued and offers a favorable risk-reward profile, especially as AI infrastructure demand continues to surge.
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NBIS is an AI infrastructure holding company that builds and operates large-scale GPU clusters, an AI-centric cloud platform, and related services.
Key Reasons Behind the Bullish Rating
Duval sees Nebius as a leader in the AI Neocloud market, a fast-growing niche where companies rent high-performance GPU infrastructure to run generative AI and machine learning tasks.
Unlike traditional cloud providers, NBIS offers a full-stack platform that includes orchestration software, elastic server configurations, and scalable storage. This gives it a cost and performance edge over rivals like CoreWeave (CRWV).
The four-star analyst believes Nebius is well-positioned to benefit from the surge in demand for specialized GPU capacity, especially as startups and enterprises look for alternatives to big cloud providers like Amazon’s (AMZN) AWS and Google Cloud.
Duval also highlighted Nebius stock’s low valuation, trading at just 3x EV/sales compared to CoreWeave’s 5x. Further, he expects a “supportive catalyst path” over the next 12 months due to new partnerships, expanded data center capacity, and rollout of Nvidia’s (NVDA) latest Blackwell chips.
Is NBIS a Good Buy?
Turning to Wall Street, NBIS stock has a Strong Buy consensus rating based on four Buys assigned in the last three months. At $66.50, the average Nebius stock price target implies a 28.01% upside potential.
