Nebius Group (NBIS) Carries Strong Potential for Margin Expansion and Free Cash Flows

Nebius Group NV (NASDAQ:NBIS) is one of the best large cap stocks under $100 with huge upside potential.

On January 15, Morgan Stanley analyst Josh Baer initiated coverage on Nebius Group NV (NASDAQ:NBIS), assigning an Equal Weight rating to the stock. He estimated over 33% upside potential based on a price target of $126.

Despite an Equal Weight stance, Baer sees immense potential for Nebius Group NV (NASDAQ:NBIS) to expand its long-term margins and generate free cash flows. This is mainly because the company appears well-positioned to rapidly scale its operations. The analyst also highlighted some other fundamental factors that offer strength to the business, such as the company’s software platform, diverse customer base, and its ability to expand its footprint in the AI infrastructure space.

Back on January 6, Nehal Chokshi from Northland Securities reaffirmed his Outperform rating for Nebius Group NV (NASDAQ:NBIS). He estimated a price target of $211, which yields a notable upside of above 123%. It is pertinent to mention that Nebius Group NV (NASDAQ:NBIS) has been named a top pick for 2026 by Northland Securities. The firm’s confidence in the business stems from a strong visibility into the sourcing of 2.5GW of power, and encouraging prospects regarding their $17 billion AI infrastructure partnership with Microsoft.

Nebius Group NV (NASDAQ:NBIS) builds full-stack infrastructure for global AI industry, that is designed for immense AI workload. It offers large-scale GPU clusters, cloud platforms and tools for developers, through its own servers and data architecture. The company also operates other businesses through TripleTen, ClickHouse, Toloka, and Avride brands.

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.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.