BofA Raises Nebius Price Target to $280 on AI Infrastructure Demand

Bank of America (BofA) analyst Tal Liani raised the price target for Nebius Group N.V. (NASDAQ: NBIS) to $280 from $240, representing a 16.7% increase. The revision reflects expectations of sustained demand for AI infrastructure and data center expansion, particularly ahead of the upcoming 'Vera Rubin' chip cycle.

Recommendation Change

• Previous Price Target: $240
• New Price Target: $280
• Rating: Buy (unchanged)

Analyst Rationale

Liani believes Nebius is well-positioned to benefit from growing demand for high-performance computing (HPC) needed for AI development. He also noted the company is building a strategic technology stack encompassing data centers and cloud services, enhancing its competitive edge.

Context

This upgrade comes amid massive investments in AI infrastructure across the sector. The upcoming 'Vera Rubin' chip cycle could further boost demand for specialized computing solutions. No other analysts have issued similar comments yet, but the stock has performed positively in recent weeks.

What to Make of It

The price target hike reflects analyst confidence in Nebius's growth prospects in the AI market. However, investors should monitor the company's execution of expansion plans and competitive dynamics in the sector.