Nebius Group (NASDAQ:NBIS) grew its share price by 7.44 percent on Thursday to finish at $243.48 apiece, as investors grew increasingly interested in its stock following a massive price target hike and news that it would raise its GPU prices beginning next week.
In its market coverage, investment firm BNP Paribas raised its price target for the stock by 53 percent to $399 from $260 previously, as well as its rating to outperform from neutral prior.
The new figure marked a 64 percent upside potential from its latest closing price.
For illustration purposes only. Photo by Brett Sayles on Pexels
BNP Paribas said that the coverage reflected Nebius Group’s upcoming price increase for its AI cloud services amid the strong demand from the artificial intelligence sector.
Double-Digit Price Hike for Nvidia GPUs
Beginning October 1, Nebius Group said that it will raise its Nvidia GPU rates by roughly 17 to 21 percent, while rates for AMD EPYC Genoa CPU services are projected to rise by 25 percent, amid continued demand for computing capacity and limited computing resources.
The news bodes well for the company as it would translate to higher revenue generation to be realized beginning in the fourth quarter of the year.
In the second quarter, Nebius Group swung to a net loss of $190.4 million from a $502.5 million net income in the same period last year, while adjusted net loss narrowed by 64 percent to $33.2 million from $91.5 million.
However, revenues jumped by 454 percent to $582.3 million from $105.1 million year-on-year, signaling a very strong demand for its services.
It also swung to an adjusted EBITDA of $236.2 million from a $21 million loss in the same comparable period.
Hedge Fund Conviction ‘More-Than-Triples’
Institutional investors signaled their highly bullish stance for Nebius Group in the second quarter of the year.
Data from Insider Monkey showed that during the period, 86 hedge funds held positions in the stock, up markedly from 60 in the first quarter of the year.
More notably, their combined holdings more than tripled to $8.28 billion from $2.36 billion quarter-on-quarter.
As September comes to a close, market participants are expected to stay on the sidelines ahead of upcoming 13F filings to gauge whether institutional heavyweights are doubling down as the company leans into higher pricing.
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