Compass Point has a bullish stance on Nebius Group. The firm rates the Artificial Intelligence Infrastructure stock a Buy and starts with a price target of $150, implying an upside of 54%. Nebius’ advantage lies in its position in expanding data center capacity, the most scarce part of the software stack, and its ability to turn GPU investments into usable clusters as customer demand increases, wrote analyst Michael Donovan. “The company runs a full-stack model across cloud software, purpose-built systems, and equipment, which supports predictable performance, high utilization, and production-grade reliability,” he said. NBIS 1Y Mountain NBIS 1Y Chart He added that Nebius’ infrastructure is built around Nvidia’s latest platforms and high-speed networking, enabling large-scale training and inference workloads. The company also incorporates security, compliance management, and capacity reservation tools, which eases the burden for companies planning AI deployments. Donovan wrote that Nebius’ future catalyst will come from the company’s partnerships with hyperscalers. “Hyperscaler deals with Microsoft (MSFT) and Meta (META) solidify demand visibility, while rapid revenue growth and ARR expansion provide a framework for near-term growth,” he said. “We base our constructive views on execution and expect Nebius to convert contracted power and funded capex into online clusters on schedule, while maintaining high utilization as the footprint grows.” The analyst also cited Nebius’ software as another driver, praising the company’s AI cloud offering designed for large-scale training and workloads, and the token factory targeted for production inference and post-training use cases. Nevius stock is up 103% in the past 12 months and 17% this year.
