Northland Boosts Nebius Price Target to $248 after 684% Revenue Surge
Northland lifted Nebius Group’s price target to $248 from $215 and kept an Outperform rating after quarterly revenue surged 684% to $399 million, fueled by $389.7 million in AI Cloud sales and $1.9 billion in annual recurring revenue. GPU capacity is sold out and prices are rising, driving a 166% YTD rally.
1. Analyst Uplift and Rating
Northland raised the price target to $248 from $215 and maintained an Outperform rating, citing strong demand for Nebius’ AI infrastructure services.
2. Explosive Quarterly Growth
Nebius reported revenue of $399 million, up 684% year-over-year, with AI Cloud generating $389.7 million and annual recurring revenue reaching $1.9 billion.
3. Capacity Constraints and Pricing
The company's active GPU capacity is completely sold out while pricing for GPU resources continues to increase, highlighting tight supply as demand soars.
4. Market Reaction and Risks
Shares jumped about 7% on the price target update, bringing the stock up 166% YTD, though some analysts warn of overbought conditions and elevated short interest ratios.