​Why is Nebius Group (NBIS) Surging?

​Nebius Group N.V. (NASDAQ:NBIS) is one of the Hottest Large-Cap Stocks to Buy Now. Nebius Group N.V. (NASDAQ:NBIS) signed a $17.4 billion AI infrastructure deal with Microsoft Corp (NASDAQ:MSFT), on September 8. The stock has surged more than 100.5% since the announcement.

​Reuters reported that, as per the deal, Nebius Group N.V. (NASDAQ:NBIS) will provide Microsoft with its GPU infrastructure capacity for over 5 years. The CEO of the company noted that the economics of the deal are attractive, and more significantly, he believes the deal will help the company accelerate its AI cloud business growth in 2026 and beyond.

​Recently, on October 9, Alexander Duval from Goldman Sachs raised the firm’s price target on Nebius Group N.V. (NASDAQ:NBIS) from $120 to $137, while reiterating a Buy rating on the stock.

​Nebius Group N.V. (NASDAQ:NBIS) develops and operates infrastructure specifically designed for artificial intelligence applications internationally. The company provides cloud platforms, GPU clusters, and other AI development tools for various industries.

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.