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Nebius Group (NBIS) stock jumped 9% on Thursday after Bank of America raised its revenue expectations for 2026, 2027 and 2028.
BNP Paribas also upgraded the shares to Outperform from Neutral and raised its price target to $399 from $260.
The analyst moves come as Nebius expands its AI cloud business and benefits from demand for high-end Nvidia GPU computing capacity.
Bank of America raises Nebius revenue expectations
Bank of America reiterated its Buy rating on Nebius and maintained a $310 price target while lifting its revenue expectations for the company through 2028.
Analyst Tal Liani said Nebius uses long-duration contracts with hyperscalers to establish a stable base of infrastructure utilization, while keeping part of its capacity available for shorter contracts.
“Nebius uses long-duration hyperscaler contracts to establish a stable utilization base while reserving a portion of capacity for 1-3 year contracts priced at roughly 2x hyperscaler rates,” Liani said in a Thursday report.
He added that higher revenue should contribute to expanding margins.
The approach could allow Nebius to balance more predictable demand from longer contracts with potentially higher pricing from shorter-term agreements.
BNP Paribas upgrades stock and lifts target
BNP Paribas upgraded Nebius to Outperform from Neutral, citing improving prospects for the company.
The broker also raised its price target sharply to $399 from $260, reflecting a more optimistic view of Nebius’ potential.
Nebius has been expanding its AI cloud infrastructure as demand for computing resources grows.
The company remains capital intensive, however, with significant investment required in data centres and hardware.
That spending also creates financial risks if customer usage or new contracts do not increase as expected.
The company’s continued cash burn means the pace of its infrastructure ramp remains an important consideration for investors.
GPU price increases point to demand
Nebius was also reportedly preparing another increase in prices for several on-demand Nvidia GPU resources from October 1.
The reported changes affect Nvidia’s H100, H200, B200, and B300 chips.
According to customer communication circulated online and later reported by Stocktwits, on-demand rates for the GPUs could rise by roughly 17% to 21%, depending on the model.
The reported changes would represent the second price increase in roughly three months.
The H100 rate is expected to increase to $4.50 from $3.85, while the H200 rate could rise to $5.40 from $4.50.
The proposed increases could point to continued demand for high-end AI computing capacity and Nebius’ ability to charge more for its GPU cloud services.
Nebius’ Q2 AI cloud revenue reached $574.9 million, with an adjusted EBITDA margin near 50%.
At the same time, $7.8 billion of infrastructure was still classified as not yet in use.
For longer-term investors, the company’s AI cloud revenue growth and backlog indicate a pipeline of demand as capacity expands.
However, the valuation leaves less room for execution mistakes, while the capital-intensive nature of the business remains a key risk as Nebius scales its infrastructure.
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