Key Highlights
- Bank of America launched coverage of Nebius (NBIS) with a Buy rating and $150 target, suggesting 31% potential upside
- Shares rose approximately 2% in premarket trading Tuesday after the coverage announcement
- BofA described Nebius as an “emerging leader in global AI compute,” emphasizing its GPU-intensive data center approach
- Meta secured a deal worth up to $27B across five years for Nebius AI infrastructure; Nvidia contributed a $2B investment
- Company revenue jumped 351% year-over-year to reach $529.8M, achieving a 68.6% gross margin
Nebius (NBIS) shares advanced approximately 2% in premarket activity Tuesday following Bank of America’s initiation of coverage with a Buy recommendation and a $150 price objective.
BofA analyst Tal Liani and colleagues characterized Nebius as a rising force in worldwide AI computing infrastructure. The firm highlighted the company’s strategic positioning within the AI Infrastructure-as-a-Service sector as a primary catalyst for their positive outlook.
Nebius constructs and operates expansive data centers, enabling enterprises to train and deploy AI models without constructing proprietary infrastructure. BofA characterized it as a purpose-engineered platform optimized for GPU-intensive distributed computing operations.
The research team forecasted the overall IaaS market, encompassing AI IaaS, will exceed $419 billion by 2028. They attributed this expansion to increasingly complex model architectures and accelerated enterprise AI implementation.
The equity has surged 291% during the past twelve months. Based on current trading levels, the $150 price objective suggests approximately 31% additional appreciation potential, though InvestingPro analysis indicated the shares may be trading above fair value estimates. The stock hovered around $114 prior to Tuesday’s market open.
Strategic Partnerships With Meta and Nvidia Bolster Confidence
Earlier this month, Meta Platforms agreed to allocate up to $27 billion across five years for access to Nebius AI infrastructure services. The arrangement began with a $12 billion baseline commitment, featuring provisions for an incremental $15 billion expansion.
Nvidia separately disclosed a $2 billion equity investment in the Netherlands-based enterprise, reinforcing validation of its infrastructure business model.
These agreements triggered multiple analyst price target revisions. BWS Financial elevated its objective to $200 from a previous $130. DA Davidson similarly increased its target to $200 from $150 following the Meta partnership announcement. Compass Point maintained its Buy stance with a $150 target.
Microsoft also appears on Nebius’s client roster, joining Meta as a major customer.
Financial Performance Supports Growth Narrative
Nebius documented revenue of $529.8 million during the trailing twelve-month period, representing a 351% year-over-year surge. The company achieved a gross margin of 68.6%.
The organization also completed pricing of a $4 billion convertible senior notes offering, expanded from an initial $3.75 billion proposal. The transaction comprised $2.25 billion in 1.250% notes maturing in 2031 and $1.75 billion in 2.625% notes due in 2033, marketed to qualified institutional purchasers with anticipated settlement in March 2026.
BofA simultaneously resumed coverage of CoreWeave (CRWV), a competitor in the AI infrastructure domain, assigning a Buy rating alongside a $100 price target on Tuesday.
Nebius lists Microsoft and Meta among its principal clients and continues expanding its data center infrastructure to satisfy growing demand for AI computational capacity.
