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Citi analyst Tyler Radke has maintained a Buy rating on Nebius Group (NBIS) while lowering the price target from $324 to $265.
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Microsoft is reportedly increasing its oversight of certain data center projects, including those involving Nebius Group N.V., amid concerns over construction and permitting delays.
Nebius Group stock has fallen 47% from its June peak to around $152. The bull case rests on management's target of $7-9 billion annualized run-rate revenue by year-end 2026 (up from $3 billion in June), with the company demonstrating strong growth momentum. However, the bear case highlights massive capital expenditure needs ($20-25 billion in 2026) requiring significant external funding, customer concentration risk (3 customers = 59% of revenue), and reliance on share dilution and debt. The analyst recommends waiting for Q3 results on Nov. 12 to assess if the company remains on track for its targets before making an investment decision.
CoreWeave and other data center stocks are trading lower Wednesday after Democrats won control of Congress in the midterm elections.
Wall Street analysts identify three Nasdaq-100 stocks with potential to double based on median target prices: CoreWeave (140% upside) as a leading AI cloud provider with strong revenue growth but profitability concerns due to high debt; Nebius Group (100% upside) as an emerging AI cloud competitor with faster revenue growth but expensive valuation; and Alnylam Pharmaceuticals (100% upside) as an RNA interference therapy leader with an attractive valuation and promising pipeline.