Nebius Group, an artificial intelligence data center company, has seen its shares soar by nearly 29% since last Friday after raising capital and receiving positive sentiment from Wall Street. The company announced a successful $1 billion funding round through two tranches of unsecured convertible notes.
The new capital will enable Nebius to scale rapidly and expand its global AI infrastructure footprint, paving the way for increased revenue opportunities in 2026. Founder and CEO Arkady Volozh stated that the fresh capital gives the company more firepower to accelerate its growth.
Analysts are bullish on Nebius, with Arete Securities’ Andrew Beale initiating coverage with a buy rating and $84 price target. Beale prefers Nebius over CoreWeave, another AI-focused company, due to Nebius’ more attractive valuation.
While high valuations have led some investors to avoid the AI sector, Nebius has historically been relatively affordable. The company’s neo-cloud valuation is seen as too low by Beale, who believes Nebius has significant upside potential.
With a market capitalization of around $11 billion, Nebius trades at a premium price but could remain attractive if management hits its mid-single-digit billions revenue guidance in the coming years. Before investing in Nebius Group, consider that The Motley Fool’s Stock Advisor team did not recommend it for their list of top 10 stocks to buy now.
Source: https://www.nasdaq.com/articles/why-shares-nebius-group-are-soaring-week