Nebius Stock Surges Ahead of Q2 Earnings as Goldman Sachs Sees 49% Upside

Nebius stock surged over 3% on Tuesday as investors await its Q2 earnings report, scheduled for August 12. The boost comes from Goldman Sachs analyst Alexander Duval's reaffirmation of a Buy rating and $286 price target, implying about a 49% upside from current levels.

According to Duval, Nebius' AI compute capacity is in high demand, with tight supply allowing the company to maintain pricing power. He notes that Nebius sold out its Q1 capacity despite charging higher prices, indicating robust demand across the AI infrastructure market.

The analyst also expects Nebius to transition towards an asset-light model, enabling the company to grow without a proportional increase in capital spending. This aligns with Nebius' goal of reaching $7 billion to $9 billion in annualized run-rate revenue by 2026, up from its current full-year guidance of $3 billion to $3.4 billion.

However, not all analysts share Duval's optimism. D.A. Davidson's Gil Luria downgraded Nebius to Neutral and cut his price target from $250 to $175, implying about a 10% downside from current levels. Luria expressed concerns that Nebius may struggle to complete its data center expansion on schedule, which could weaken investor confidence in management's ability to convert contracted capacity into revenue-producing infrastructure.

Wall Street holds a mixed view overall, with seven analysts recommending a Buy rating and four staying on the sidelines. The average analyst price target is $241, implying about 26% upside from current levels.