Nebius Group NV (NASDAQ:NBIS) surged by 47.7 percent week-on-week, making it the third-biggest gainer last week, thanks to a combination of stellar earnings and a flurry of stock price target upgrades from analysts.
In a statement early last week, the listed firm said that it grew its revenues by more than fivefold to $582.3 million from only $105.1 million in the same period last year, and also beat the $572.75 million expectations from analysts.
It was by far the strongest quarter, with deals yielding an average of more than $20 million per megawatt.
The rally signaled high optimism for the company’s growth prospects, having shunned the firm’s swing to a net loss of $190.4 million from a $584.4 million net income year-on-year, dragged by higher operating costs and expenses.
For illustration purposes only. Photo by Brett Sayles on Pexels
Further Expansion
The company has hinted at expanding further next year to capture a significant share in the surging demand for AI infrastructure.
According to Nebius Group NV (NASDAQ:NBIS) CEO Arkady Volozh, the company is raising its year-end contracted power target to 5 GW, and is planning to deploy more than 1 GW per year of capacity beginning next year.
Nebius Group NV (NASDAQ:NBIS) successfully closed four major AI cloud contracts in the second quarter of the year. From $20 million per megawatt at present, newer opportunities are targeted to boost pricing to a range of $40 million to $50 million per megawatt.
“We could sell our entire 2027 capacity on these terms today. We are deliberately not doing so because we see higher value in retaining some capacity for immediate customer needs,” he said.
Analysts, Hedge Funds Bullish
Following the results, three analysts recommended investors buy the shares, two of which raised their price targets.
One, on the other hand, assigned a more conservative hold rating.
Northland Securities became the most bullish among last week’s coverage of the company, raising its price target by 65 percent to $410 from $248 previously, while maintaining a buy recommendation.
Citigroup followed with a 16.5 percent price target hike to $324 from $278 prior, while also reaffirming a buy call.
Bank of America also suggested that investors buy its shares, while assigning a price target of $310.
On the other hand, Morgan Stanley only issued a hold recommendation at a price target of $144, or a 48 percent discount from its closing price of $277.68 on Friday.
As for hedge fund positioning, data from Insider Monkey showed that the number of hedge funds holding positions in the company increased to 60 in the first quarter of the year from 54 in the fourth quarter of 2025.
More importantly, their combined holdings soared by 123 percent to $2.36 billion from only $1.06 billion quarter-on-quarter, signaling that while more hedge funds are establishing exposure, they are committing a significant amount to the company over its rosy growth prospects.
The first quarter of the year has already signaled a sharp increase in institutional investors. Assuming the second-quarter data reveal more hedge fund positioning, it would provide another indication that Nebius Group NV’s (NASDAQ:NBIS) rally is more than just a short-term growth story.
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 the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center