Bank of America Sets $150 Target for Nebius (NBIS) Stock Amid AI Infrastructure Boom

Key Highlights

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Bank of America launched coverage of Nebius (NBIS) with a Buy rating and set a $150 price target, suggesting 31% potential upside
Shares gained approximately 2% in premarket trading Tuesday after the analyst initiation
BofA positioned Nebius as an “emerging leader in global AI compute,” emphasizing its GPU-intensive data center approach
Meta secured a commitment worth up to $27B spanning five years for Nebius AI infrastructure; Nvidia pumped in $2B
Company revenue jumped 351% year-over-year to reach $529.8M, achieving a 68.6% gross margin

Shares of Nebius (NBIS) advanced roughly 2% in Tuesday’s premarket session following Bank of America’s initiation of coverage with a Buy recommendation and $150 price objective.

Nebius Group N.V., NBIS

BofA analyst Tal Liani, along with his research team, characterized Nebius as a rising force in the global AI compute landscape. The analysts highlighted the company’s strategic positioning within the AI Infrastructure-as-a-Service sector as a primary catalyst for their bullish stance.

Nebius constructs and operates expansive data centers, enabling enterprises to train and deploy AI models without investing in proprietary infrastructure. BofA portrayed the platform as specifically engineered for GPU-intensive distributed computing workloads.

The research team forecasted that the overall IaaS market, encompassing AI IaaS, will exceed $419 billion by 2028. Analysts attributed this expansion to increasing model sophistication and accelerated enterprise AI implementation.

The stock has skyrocketed 291% over the past twelve months. From current trading levels, the $150 price objective represents approximately 31% additional upside potential, although InvestingPro analysis suggested the stock may be trading above its fair value benchmark. Shares were hovering near $114 before Tuesday’s opening bell.

Strategic Partnerships With Meta and Nvidia Strengthen Position

Earlier in the month, Meta Platforms agreed to allocate up to $27 billion across a five-year period to utilize AI infrastructure provided by Nebius. The agreement initially stood at $12 billion, with provisions for an extra $15 billion extension.

Nvidia separately disclosed a $2 billion equity investment in the Netherlands-based company, further validating its infrastructure business model.

These strategic agreements triggered multiple analyst upgrades. BWS Financial elevated its price target to $200 from $130. DA Davidson similarly increased its objective to $200 from $150 following the Meta announcement. Compass Point maintained its Buy recommendation with a $150 price target.

Microsoft appears on Nebius’s client roster alongside Meta, strengthening its enterprise customer portfolio.

Financial Performance Supports Growth Narrative

Nebius disclosed revenue of $529.8 million for the trailing twelve-month period, representing a 351% increase year-over-year. The company posted a gross margin of 68.6%.

The firm also completed pricing on a $4 billion convertible senior notes offering, expanded from the original $3.75 billion proposal. The transaction consisted of $2.25 billion in 1.250% notes maturing in 2031 and $1.75 billion in 2.625% notes due in 2033, marketed to qualified institutional investors with anticipated settlement in March 2026.

Bank of America simultaneously resumed coverage of CoreWeave (CRWV), a competing player in the AI infrastructure market, assigning a Buy rating with a $100 price target on Tuesday.

With Microsoft and Meta as anchor clients, Nebius continues expanding its data center infrastructure to accommodate surging demand for AI computational capacity.

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