10 High-Flying Tech Stocks to Buy

​8. Nebius Group N.V. (NASDAQ:NBIS)

6-month Performance: 81.17%

Analyst Upside Potential: 61.38%

Number of Hedge Fund Holders: 65

​Nebius Group N.V. (NASDAQ:NBIS) is one of the High-Flying Tech Stocks to Buy. Nebius Group N.V. (NASDAQ:NBIS) has gained more than 80% over the past 6 months. Wall Street remains a Strong Buy with 75% of the 12 analysts covering the stock having a Buy rating.

​Recently, on January 15, Morgan Stanley initiated coverage of the stock with a Market Perform rating and a $126 price target. The firm noted that they see the company to be well-positioned to rapidly scale its AI infrastructure capability, driven by its software platform, diverse customers, and managed services. Morgan Stanley believes that these factors enable the company to expand its market share in the AI market.

Moreover, the firm also highlighted that beyond its core AI component, Nebius Group N.V. (NASDAQ:NBIS) also benefits from non-core businesses and equity stakes that improve its overall value. However, despite these positive factors, the firm initiated the stock with a Market Perform rating.

​The firm cited a few challenges, including a rising depreciation from a 4-year asset life, pressuring margins, and EBIT. In addition, Morgan Stanley also expects free cash flow to remain negative due to heavy capital expenditure for 2.5 GW of AI infrastructure by the end of 2026. The firm also noted that the $7 billion to $9 billion ARR target for Q4 2026 sounds overly optimistic and will require Nebius Group N.V. (NASDAQ:NBIS) to significantly outperform, amidst these challenges.

​Nebius Group N.V. (NASDAQ:NBIS), headquartered in Amsterdam, develops and operates an AI cloud infrastructure designed for training and inference of advanced machine learning models.