Compass Point Initiates Buy on Nebius Group with $150 Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy NBIS?
Source: CNBC
- Rating Upgrade: Compass Point has initiated a buy rating on Nebius Group with a price target of $150, indicating a 54% upside, reflecting strong confidence in the company's future growth prospects.
- Infrastructure Advantage: Nebius excels in scaling the most scarce part of the software stack—data center capacity—effectively converting GPU investments into usable clusters to meet growing customer demand.
- Catalyst Potential: Partnerships with hyperscalers like Microsoft and Meta provide visibility into demand, while rapid revenue growth and expanding annual recurring revenue (ARR) set the stage for near-term growth.
- Software Drivers: Nebius's AI Cloud offering and Token Factory are seen as key growth drivers, with the former designed for large-scale training and workloads, and the latter targeting production inference and post-training use cases, enhancing the company's competitive edge.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NBIS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NBIS
Wall Street analysts forecast NBIS stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 97.520
Low
130.00
Averages
164.20
High
211.00
Current: 97.520
Low
130.00
Averages
164.20
High
211.00
About NBIS
Nebius Group NV is a Netherlands-based infrastructure company operating in the technology industry. The Company is engaged in developing a portfolio of artificial intelligence-related technology assets. It is involved in creating an artificial intelligence-centric player to integrate the essential elements of artificial intelligence development with infrastructure, data and advisory globally. It offers products and services such as a cloud platform for artificial intelligence-related workloads, development team services for autonomous vehicles, development of generative artificial intelligence. Nebius builds full-stack infrastructure to service the growth of the global AI industry, including GPU clusters, cloud platforms and tools and services for developers. Company is developing three other businesses that operate under their own brands: Toloka AI, TripleTen and Avride.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nebius Group Poised for 1000% Returns Over Next Decade
- Surging Annual Recurring Revenue: Nebius closed 2025 with $1.25 billion in annual recurring revenue (ARR) and projects up to $9 billion for 2026, driven by its growing power contracts, particularly the $19.4 billion deal with Microsoft.
- Power Contract Expansion: The company anticipates having 3 gigawatts of contracted power by the end of 2026, having already secured over 2 gigawatts, which enables it to support nine additional deals like the Microsoft agreement, significantly enhancing its market competitiveness.
- Cash Reserves and Acquisitions: With $3.7 billion in cash, Nebius is well-positioned to accumulate more power and build additional data centers, while strategic acquisitions like Tavily will strengthen its software capabilities, further solidifying its market leadership.
- Industry Demand and Competitive Edge: As AI data centers face electricity shortages and a lack of skilled workers, Nebius is ahead of the competition with completed infrastructure and secured energy contracts, likely attracting more tech giants to sign expensive deals, paving the way for a potential tenfold stock return.
See More
Latest Ratings and Outlook from Wall Street
- Amazon Remains a Top Pick: Morgan Stanley reiterates Amazon as overweight, highlighting its underappreciated potential in AWS and retail, with expectations for AWS to grow over 30% in 2026/27, showcasing strong market competitiveness.
- Weak Demand for Crocs: Williams Trading downgrades Crocs from hold to sell, raising the price target to $84, reflecting ongoing declines in U.S. demand and challenges in expanding its global DTC business.
- Rush Street Interactive Upgrade: Citizens upgrades Rush Street Interactive to market outperform, citing its durable business model in online gaming, which indicates strong growth potential driven by favorable market conditions.
- Optimistic Outlook for Nvidia: Wells Fargo reiterates Nvidia as overweight, advising investors to buy ahead of next week's earnings report, anticipating strong demand and GPU spending dominance to drive stock price increases.
See More
Nvidia Sells Arm Stake but Maintains Partnership
- Nvidia's Stake Sale: Nvidia's SEC filing on Tuesday revealed it has offloaded its stake in semiconductor firm Arm, yet this does not signify the end of their relationship, as Arm's shares rose 1.4% in premarket trading on Wednesday.
- Shareholding History: By the end of Q3, Nvidia held 1.1 million shares of Arm valued at $155.8 million, having maintained its stake since 2023 while gradually winding it down towards the end of 2024, indicating a strategic shift in its investment approach.
- Market Reaction: When Arm debuted on Nasdaq in 2023, Nvidia was part of a strategic investment group that collectively purchased $735 million in shares, and although its $40 billion acquisition bid failed due to regulatory hurdles, Nvidia retains a 20-year licensing agreement with Arm, continuing to support its technology.
- Financial Performance: Arm's recent earnings report showed a 26% year-on-year sales increase to $1.24 billion, exceeding analyst expectations, although shares fell in after-hours trading, with analysts noting high operating expenses suggest the company is preparing for long-term demand.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Compass Point Initiates Buy on Nebius Group with $150 Target
- Rating Upgrade: Compass Point has initiated a buy rating on Nebius Group with a price target of $150, indicating a 54% upside, reflecting strong confidence in the company's future growth prospects.
- Infrastructure Advantage: Nebius excels in scaling the most scarce part of the software stack—data center capacity—effectively converting GPU investments into usable clusters to meet growing customer demand.
- Catalyst Potential: Partnerships with hyperscalers like Microsoft and Meta provide visibility into demand, while rapid revenue growth and expanding annual recurring revenue (ARR) set the stage for near-term growth.
- Software Drivers: Nebius's AI Cloud offering and Token Factory are seen as key growth drivers, with the former designed for large-scale training and workloads, and the latter targeting production inference and post-training use cases, enhancing the company's competitive edge.
See More
Nebius Group: Rising Star in AI Infrastructure
- Surging Market Demand: U.S. data center power demand is projected to rise from 25 gigawatts in 2024 to 106 gigawatts by 2035, driving urgent needs for AI computing capacity, with Nebius playing a crucial role in this market.
- Data Center Expansion: Nebius plans to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, demonstrating its proactive approach to meet AI workload demands.
- Significant Contracted Capacity: Nebius currently holds over 3 gigawatts of contracted data center capacity, nearly 20 times its active capacity at the end of 2025, and as this capacity is converted, its revenue growth is expected to accelerate dramatically.
- Strong Revenue Projections: Nebius reported $530 million in revenue for 2025, nearly a 6x increase from the previous year, with expectations of a 27x revenue growth over the next three years, potentially elevating its market cap to $122 billion, almost 5 times its current valuation.
See More
Nebius Group Poised for 1000% Returns Over Next Decade
- Surging Annual Recurring Revenue: Nebius closed 2025 with $1.25 billion in annual recurring revenue (ARR) and projects up to $9 billion for 2026, driven by its growing power contracts, particularly the $19.4 billion deal with Microsoft.
- Power Contract Expansion: The company anticipates having 3 gigawatts of contracted power by the end of 2026, having already secured over 2 gigawatts, which enables it to support nine additional deals like the Microsoft agreement, significantly enhancing its market competitiveness.
- Cash Reserves and Acquisitions: With $3.7 billion in cash, Nebius is well-positioned to accumulate more power and build additional data centers, while strategic acquisitions like Tavily will strengthen its software capabilities, further solidifying its market leadership.
- Industry Demand and Competitive Edge: As AI data centers face electricity shortages and a lack of skilled workers, Nebius is ahead of the competition with completed infrastructure and secured energy contracts, likely attracting more tech giants to sign expensive deals, paving the way for a potential tenfold stock return.
See More
Latest Ratings and Outlook from Wall Street
- Amazon Remains a Top Pick: Morgan Stanley reiterates Amazon as overweight, highlighting its underappreciated potential in AWS and retail, with expectations for AWS to grow over 30% in 2026/27, showcasing strong market competitiveness.
- Weak Demand for Crocs: Williams Trading downgrades Crocs from hold to sell, raising the price target to $84, reflecting ongoing declines in U.S. demand and challenges in expanding its global DTC business.
- Rush Street Interactive Upgrade: Citizens upgrades Rush Street Interactive to market outperform, citing its durable business model in online gaming, which indicates strong growth potential driven by favorable market conditions.
- Optimistic Outlook for Nvidia: Wells Fargo reiterates Nvidia as overweight, advising investors to buy ahead of next week's earnings report, anticipating strong demand and GPU spending dominance to drive stock price increases.
See More
Nvidia Sells Arm Stake but Maintains Partnership
- Nvidia's Stake Sale: Nvidia's SEC filing on Tuesday revealed it has offloaded its stake in semiconductor firm Arm, yet this does not signify the end of their relationship, as Arm's shares rose 1.4% in premarket trading on Wednesday.
- Shareholding History: By the end of Q3, Nvidia held 1.1 million shares of Arm valued at $155.8 million, having maintained its stake since 2023 while gradually winding it down towards the end of 2024, indicating a strategic shift in its investment approach.
- Market Reaction: When Arm debuted on Nasdaq in 2023, Nvidia was part of a strategic investment group that collectively purchased $735 million in shares, and although its $40 billion acquisition bid failed due to regulatory hurdles, Nvidia retains a 20-year licensing agreement with Arm, continuing to support its technology.
- Financial Performance: Arm's recent earnings report showed a 26% year-on-year sales increase to $1.24 billion, exceeding analyst expectations, although shares fell in after-hours trading, with analysts noting high operating expenses suggest the company is preparing for long-term demand.
See More
Nvidia Sells ARM Stake, Market Reacts Positively
- Nvidia Reduces ARM Stake: Nvidia gradually reduced its stake in ARM by the end of 2024, holding 1.1 million shares valued at $155.8 million; despite the sell-off, Nvidia's 20-year licensing agreement with ARM remains intact, indicating a long-term partnership.
- ARM Earnings Beat Expectations: ARM reported a 26% year-on-year increase in sales to $1.24 billion in its latest earnings report, surpassing analyst expectations and demonstrating strong momentum in AI projects, although its stock fell in after-hours trading, reflecting cautious market sentiment regarding future guidance.
- Positive Market Reaction: Following its Nasdaq debut, ARM's market cap is approximately $135 billion, and Nvidia's stake reduction did not dampen market confidence, as ARM shares rose 1.4% in premarket trading, indicating investor recognition of its long-term growth potential.
- Morgan Stanley Optimistic: Morgan Stanley has an “overweight” rating on ARM with a price target of $135, representing a premium of over 6% from Tuesday's closing price, reflecting a positive outlook on ARM's future performance, particularly in ongoing investments in AI.
See More
Compass Point Initiates Buy on Nebius Group with $150 Target
- Rating Upgrade: Compass Point has initiated a buy rating on Nebius Group with a price target of $150, indicating a 54% upside, reflecting strong confidence in the company's future growth prospects.
- Infrastructure Advantage: Nebius excels in scaling the most scarce part of the software stack—data center capacity—effectively converting GPU investments into usable clusters to meet growing customer demand.
- Catalyst Potential: Partnerships with hyperscalers like Microsoft and Meta provide visibility into demand, while rapid revenue growth and expanding annual recurring revenue (ARR) set the stage for near-term growth.
- Software Drivers: Nebius's AI Cloud offering and Token Factory are seen as key growth drivers, with the former designed for large-scale training and workloads, and the latter targeting production inference and post-training use cases, enhancing the company's competitive edge.
See More
Nebius Group: Rising Star in AI Infrastructure
- Surging Market Demand: U.S. data center power demand is projected to rise from 25 gigawatts in 2024 to 106 gigawatts by 2035, driving urgent needs for AI computing capacity, with Nebius playing a crucial role in this market.
- Data Center Expansion: Nebius plans to operate 16 data centers in the U.S. and Europe by the end of 2026, a significant increase from just 2 in 2024, demonstrating its proactive approach to meet AI workload demands.
- Significant Contracted Capacity: Nebius currently holds over 3 gigawatts of contracted data center capacity, nearly 20 times its active capacity at the end of 2025, and as this capacity is converted, its revenue growth is expected to accelerate dramatically.
- Strong Revenue Projections: Nebius reported $530 million in revenue for 2025, nearly a 6x increase from the previous year, with expectations of a 27x revenue growth over the next three years, potentially elevating its market cap to $122 billion, almost 5 times its current valuation.
See More
