Nebius Group (NASDAQ: NBIS), an artificial intelligence infrastructure company, has posted a share price gain of roughly 444% over the last 12 months.
The company has driven that performance by winning contracts with cloud hyperscalers and securing a partnership alongside a $2 billion investment from Nvidia.
Wall Street investment firms are signaling that the rally may have further to run despite the stock’s already dramatic appreciation.
On May 13, financial services firm D.A. Davidson published an updated analysis on Nebius and reiterated a buy rating on the stock.
D.A. Davidson also raised its one-year price target on the stock from $200 per share to $250 per share, implying additional upside of roughly 19%.
Two days later, on May 15, Citi published its own updated coverage on Nebius and maintained a buy rating on the stock.
Citi set a one-year price target of $287 per share, citing strengthening demand for the company’s technologies amid rising prices for graphics processing units.
Citi’s price target implies additional upside potential of roughly 37% from the level at which the stock was trading at the time of that analysis.
Nebius is currently valued at roughly $54.5 billion and trades at approximately 16 times this year’s expected earnings, meaning considerable growth is already factored into the stock’s price.
The company managed to increase revenue by 684% year over year in its most recent quarter, a figure that analysts say could indicate the stock remains undervalued at current prices.
The combination of rapid revenue expansion, high-profile partnerships, and continued buy ratings from major Wall Street firms has positioned Nebius as one of the more closely watched names in AI infrastructure.
Whether the stock can sustain its trajectory will depend largely on whether demand for its services continues to accelerate in line with Wall Street’s expectations.
