Nebius (NBIS) stock has rallied 366% over the past year, as the cloud computing company is seeing solid demand amid the artificial intelligence (AI) boom. On Tuesday, Nebius stock jumped 12.5% after the company announced its plans to build a new data center in Finland with a capacity of up to 310 megawatts (MW), which will make it one of Europe’s largest AI facilities. The stock is up 2.7% as of Wednesday morning. Wall Street is highly bullish on Nebius stock, with the average price target indicating continued upside on AI-led tailwinds.
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New trading tool for CRWV bullsAnalysts Are Upbeat About Nebius’ Growth Prospects
Recently, Bank of America analyst Tal Liani initiated coverage of Nebius stock with a Buy rating and a price target of $150. The top-rated analyst highlighted that Nebius operates in one of the fastest-growing segments of cloud computing – the AI Infrastructure-as-a-Service (IaaS) market. It allows companies to train and run AI models without having to invest heavily in their own infrastructure.
Highlighting the huge opportunity for Nebius, Liani noted that the total addressable market (TAM) for IaaS, including AI IaaS, is projected to cross $419 billion by 2028. This growth is expected to be driven by rising model complexity and rapid enterprise adoption of AI. Liani believes that Nebius is well-positioned to win market share, given that it is one of the few purpose-built platforms designed particularly for GPU-dense distributed workloads and boasts a customer base that includes Microsoft (MSFT) and Meta Platforms (META).
Meanwhile, D.A. Davidson analyst Alex Platt reiterated a Buy rating on NBIS stock and boosted his price target to $200 from $150 following the announcement of a new large-scale $27 billion contract with Meta Platforms. The 5-star analyst noted that this contract is in addition to a $3 billion deal announced by the two companies last year.
Platt is confident about Nebius’ growth trajectory and believes that the Meta Platforms deal validates “Nebius as one of the leading neocloud players, alongside CoreWeave (CRWV).” Interestingly, Platt sees the possibility of Nebius signing another deal with a large hyperscaler customer over the next year. He highlighted that Nebius plans to deploy more than 5 GW of capacity by the end of 2030.
Is NBIS a Good Stock to Buy?
With eight Buys and one Hold, Wall Street has a Strong Buy consensus rating on Nebius stock. The average NBIS stock price target of $166.11 indicates about 56% upside potential from current levels.
