Nebius Group (NBIS) and Former Bitcoin Miners Initiated as Key AI/HPC Power Providers by JMP, Poised for Value Unlock Amid Scarcity and Strong GPU Cluster Pricing

Nebius Group (NASDAQ:NBIS) is one of the best Reddit stocks to invest in right now. On November 19, Citizens JMP initiated coverage of Nebius with an Outperform rating and $175 price target. This sentiment came out as the firm initiated coverage on five former Bitcoin mining companies, now viewing them as key providers of critically scarce power supply for HPC and AI. Citizens JMP believes that the deployment of GPU clusters presents an opportunity to unlock significant value due to strong pricing trends driven by a persistent supply/demand imbalance in the group.

In its Q3 2025 earnings call, Nebius Group achieved a year-over-year revenue growth of 355%, reaching $146 million. This expansion follows the signing of a major deal with Meta (NASDAQ:META) valued at ~$3 billion, which complements an even larger contract previously secured with Microsoft (NASDAQ:MSFT) valued between $17.4 and $19.4 billion. The Microsoft contract is not expected to significantly impact revenue in 2025, with most of the revenue ramping up throughout 2026.

The company’s focus remains on developing its core AI cloud, using these large contracts to finance further expansion while simultaneously serving AI startups. The company is also aggressively expanding its infrastructure, with a plan to increase its contracted power to 2.5 gigawatts by the end of 2026. This expansion requires substantial capital, leading the company to increase its 2025 CapEx guidance from $2 to ~$5 billion. Looking forward, Nebius is targeting a high ARR goal of $7 to $9 billion for 2026.

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.