10 Most Promising Cloud Stocks According to Analysts

6. Nebius Group N.V. (NASDAQ:NBIS)

Potential Upside: 51.85%

Number of Hedge Fund Holders: 65

On January 20, Nebius Group N.V. (NASDAQ:NBIS) was selected by the Israel Innovation Authority to operate and develop the company’s national supercomputer infrastructure as part of a state initiative supporting AI. The firm won the contract following a competitive process, with the systems already operational and ready to deploy 1,000 Nvidia B200 accelerators.

The use of the company’s technology alongside Nvidia’s high-performance GPUs highlights the reliability and quality of its products, signaling strong market validation. The project improves the company’s credibility and positions it at the center of Israel’s AI ecosystem.

Dror Bin, CEO of the Israel Innovation Authority, commented:

”The launch of the national supercomputer for use by industry and academia is a key step in strengthening Israel’s R&D infrastructure for artificial intelligence. This initiative is designed to enable the development and training of large models in Israel, accelerate industrial and research innovation, and strengthen Israel’s ability to continue leading in the global technological race.”

Morgan Stanley started coverage of the stock with a Hold rating on January 15. Analyst Josh Baer assigned a $126 price target to the shares, implying a further 32.56% upside from current levels. The firm cited strong external validation for Nebius’ vertically integrated artificial intelligence cloud platform, supported by the presence of key reference customers.

Nebius Group N.V. (NASDAQ: NBIS) is a technology company. The company is involved in building full-stack infrastructure to service the global AI industry across the Netherlands,  North America, Europe, and Israel. It offers full-stack AI infrastructure, including cloud platforms, large-scale GPU clusters, and developer tools and services.