Morgan Stanley Cautious on Nebius (NBIS) Following NVIDIA Platform Deployment

Nebius Group NV (NASDAQ:NBIS) is one of the 13 hot stocks to buy with the highest upside potential. On February 9, analyst Josh Baer from Morgan Stanley maintained a Hold rating on Nebius Group NV (NASDAQ:NBIS), with a price target of $126. The analyst is bullish on the company’s lower total cost of ownership driven by custom infrastructure, its strong software capabilities backed by an experienced developer base, and a diversified customer mix that includes large, investment‑grade clients and strategic equity stakes that can support future capital needs.

However, Morgan Stanley analysts noted that investors are concerned about the company’s broader neocloud business model, which faces risks such as competitive pressure from hyperscalers, capital intensity, and uncertainty about long‑term software monetization and pricing dynamics amid AI capacity expansion.

Meanwhile, on January 6, Nebius Group NV (NASDAQ:NBIS) announced that it will deploy the NVIDIA Rubin platform through its AI Cloud and Token Factory services, allowing customers to access next-generation reasoning and agentic AI capabilities starting in the second half of 2026.

Morgan Stanley Cautious on Nebius (NBIS) Following NVIDIA Platform Deployment

Photo by Redd on Unsplash

Nebius Group NV (NASDAQ:NBIS) is a technology company that provides infrastructure and services to AI builders worldwide. It offers Nebius AI, an AI-centric cloud platform that provides full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools.

While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Stocks Under $3 to Buy Right Now and  10 Best High-Upside Materials Stocks to Buy

Disclosure: None. This article is originally published at Insider Monkey.