BWS Financial Raises Nebius (NBIS) PT to $130 Following $19.4B Microsoft Contract

Nebius Group (NASDAQ:NBIS) is one of the best AI stocks to buy according to analysts. On September 9, BWS Financial raised the firm’s price target on Nebius to $130 from $90, while keeping a Buy rating on the shares after the company announced its first hyperscaler contract worth ~$19.4 billion with Microsoft Corp.  (NASDAQ:MSFT) over 5 years.

With Nebius having a major contract in hand, the company is expected to accelerate GPU installations and bring New Jersey online as fast as possible. Earlier in August, Nebius Group reported its financial results for Q2 2025. The company announced an increase in revenue, which more than doubled from the previous quarter, and was up 625% year-over-year to $105.1 million. This was driven by strong demand for its AI cloud infrastructure.

Nebius’s core AI infrastructure business became EBITDA positive ahead of its own projections and is expected to remain so throughout the year, though the overall group is forecasted to be EBITDA negative for the full year. For the full year, the company’s annualized run-rate revenue guidance was raised to a range of $900 million to $1.1 billion for the end of 2025, up from a previous guidance of $750 million to $1 billion.

Nebius Group (NASDAQ:NBIS) is a technology company that builds full-stack infrastructure to service the global AI industry in the Netherlands, Europe, North America, and Israel.

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. This article is originally published at Insider Monkey.