Nebius Stock Gets Another Wall Street Upgrade. Here’s Why Investors Are Paying Attention.

Nebius (NBIS) is back in the spotlight after Freedom Capital upgraded the stock to a “Buy” rating from a “Hold” and raised its price target to $200 from $150. Analyst Paul Meeks highlighted the steep growth expectations facing NBIS stock. The company generated $399 million in revenue in the first quarter, while Wall Street expects revenue to climb to $586 million in Q2, $916 million in Q3, and $1.52 billion in Q4, marking sequential increases of 47%, 57%, and 66%, respectively.

Meeks' own projections are slightly different at $629 million, $888 million, and $1.56 billion for the final three quarters of the year. The upgrade from Freedom Capital comes as investors continue to look for companies that can benefit from the artificial intelligence (AI) boom — not just the firms building AI software, but also the companies providing the powerful computers needed to run it.

Where Nebius Fits In

Nebius builds AI cloud infrastructure, giving businesses access to high-performance GPUs used to train and run AI models. As more companies adopt AI, demand for this computing power continues to grow. Freedom Capital believes Nebius is well-positioned to benefit from that trend.

Nebius isn't trying to build the next ChatGPT or create its own AI chatbot. Instead, it provides the infrastructure that makes those products possible. Nebius is supplying the computing power that companies need, instead of competing to build out AI applications.

Why Are Investors Bullish on Nebius?

Wall Street has become increasingly optimistic about companies that provide AI infrastructure. In fact, Freedom Capital isn't the only firm to upgrade NBIS stock.

Analysts at Baird recently initiated an “Outperform” rating on Nebius stock with a $250 price target. “Our bullish thesis is based upon: 1) strong full-stack offering well positioned for inference, 2) diversifying customer base, 3) highest growth in the sector, and 4) veteran management team and employee base," wrote analyst Rob Oliver. "In a rapidly moving space, NBIS is acting decisively to strengthen its stack [through] best-in-class acquisitions."

Even better, Nvidia (NVDA) now has a 9.3% stake in Nebius. Plus, if AI keeps growing, businesses will need more computing power. That creates a large opportunity for companies like Nebius, with analysts believing the company could continue growing as more customers rent its AI computing services.

Nebius' Earnings Have Been Impressive

In the most recent quarter, Nebius posted EPS of $2.11, which beat estimates by $2.82. Revenue of $399 million, up 684% year-over-year (YOY), also beat estimates. Analysts had expected the company to report a loss per share on roughly $388 million in revenue.

“Compute and cloud needs are vastly exceeding capacity as more industries embrace AI and companies move beyond experimentation to real-world applications. We are seeing this demand first hand, and are capturing it with our full-stack AI-native cloud,” said CEO Arkady Volozh in a letter to shareholders. “From infrastructure and multi-tenant cloud through inference solutions and agentic platforms. We are not simply responding to where the industry stands today; we have the knowledge and experience to build the infrastructure, tools, and capabilities for where it will be tomorrow.”

What Do Analysts Say About NBIS Stock?

Overall, Nebius stock has a consensus “Moderate Buy” rating on Wall Street. Of the 16 analysts covering NBIS stock, 11 have a “Strong Buy” rating while five have a “Hold” rating. The mean price target of $254.92 implies potential upside of 72% from current levels. Meanwhile, the high price target of $410 implies as much as 177% possible growth from here.