/AI%20(artificial%20intelligence)/AI%20software%20engineering%20by%20Tapati%20Rinchumrus%20via%20Shutterstock.jpg)
Nebius Group's (NBIS) stock is surging after the company acquired a U.S. inference and model optimization startup for $643 million. The startup in question is Eigen AI, a company that makes large language models (LLMs) run faster and cheaper. In other words, it operates in the inference arena, the actual usage of LLMs rather than their training.
The reason its core focus is important is that inference is where the world is heading right now. Remember the CPU demand surging last month? That was all because of inference. And Nebius has now strengthened its prospects of benefiting from this trend by acquiring Eigen AI.
The company’s thesis is simple. It will deploy Eigen AI’s optimization capabilities into its own systems, thus offering market-leading performance and unit economics, giving customers exactly what they require for their inference needs. If the stock performance in the latter half of April made you think the stock had run its course, it's time to think again.
About Nebius Stock
Nebius Group is a technology company that builds infrastructure to support the global AI industry. The company offers cloud platforms, large GPU clusters, and developer tools to build and run AI applications. It also operates TripleTen, an education platform that helps people learn tech skills; Toloka, which provides data for AI development; and others.
The stock has doubled so far this year, with a major chunk of the gains coming in April. The same month also witnessed a 20% decline, prompting investors to question whether NBIS will be able to live up to the hype. It is clear now that the hype was still underestimating the company’s intentions.
The stock is now back to its all-time highs, but the party is only getting started. The company’s valuation metrics might be off the charts, but with an edge in inference through Eigen AI, the 57% projected earnings growth in 2027 and 81% in 2028 might soon be revised upward.
Nebius Misses Earnings Estimates
Nebius posted its fourth-quarter FY 2025 results on Feb. 12, reporting revenue below expectations. The company generated $227.7 million in revenue, missing estimates by $15.09 million. Even with the miss, the overall performance remained strong, with revenue rising 546.9% year-over-year (YoY). Adjusted EBITDA for the quarter came in positive, reflecting improved operational efficiency. Nebius saw exceptional growth in its AI cloud segment, with revenue surging 830% YoY. The company reported an ARR of $1.25 billion, exceeding the high end of its guidance.
Going forward, Nebius projects its 2026 revenue to range from $3 billion to $3.4 billion. ARR is expected to be between $7 billion and $9 billion. The company is targeting an adjusted EBITDA margin of 40%. It also plans to roll out most of its capacity in the second half of 2026. The company is set to announce its earnings on May 13, and one can expect strong momentum heading into that event.
What Are Analysts Saying About NBIS Stock?
Bank of America analyst Tal Liani raised the firm’s price target on NBIS stock from $150 to $175 while keeping a “Buy” rating on April 13. The firm said that the strong AI infrastructure demand, backed by recent deals and data center expansion, supports the positive outlook. On the same day, Goldman Sachs also increased its price target on the stock from $160 to $205, strengthening the bullish stance.
NBIS stock is currently covered by 15 Wall Street analysts and carries a consensus “Moderate Buy” rating. Based on their estimates, it has a mean price target of $172.54, which the stock has shot past in recent days.
On the date of publication, Jabran Kundi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
