Nebius Group (NBIS): The AI Infrastructure Play Goldman Sachs Is Backing

Nebius Group N.V. (NASDAQ:NBIS) is one of the AI Stocks in the Spotlight Today. On July 14, Goldman Sachs initiated coverage on the stock with a “Buy” rating and a $68 price target. The firm believes Nebius is a leading provider of AI infrastructure and that the AI cloud company is well-positioned.

Nebius Group, with a market capitalization of roughly $10.5 billion, is a dominant player in the AI Neocloud market. The company is a direct beneficiary of the rising demand for generative AI and customized GPU infrastructure.

“We initiate on Nebius (NBIS), a leading player in the AI Neocloud market (a niche AI GPU infrastructure rental market), with a Buy rating and a 12-month price target of $68 implying 45% upside”

The initiation note by the firm has highlighted Nebius’ key advantages, notably a full-stack software offering, cost efficiencies, and the tendency to operate at scale. These advantages are helping Nebius serve clients that require access to AI compute without having to invest in their own hardware.

Analyst Alex Duval views a favorable risk/reward skew for investors. He estimates a 4:1 upside-to-downside ratio between bull and bear scenarios. Overall, the firm asserts that Nebius is attractively priced compared to peers, particularly given its role as a pure-play in AI compute infrastructure.

Nebius Group N.V. (NASDAQ:NBIS) is an AI infrastructure firm that builds full-stack infrastructure to enable the growth of the global AI industry, including large-scale GPU clusters, cloud platforms, and tools and services for developers.

While we acknowledge the potential of NBIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.