Key Takeaways:
Citibank raised its price target on hyperscale data center provider Nebius Group (NASDAQ: NBIS) by nearly 70 percent to $287, joining a wave of bullish analyst revisions that have pushed the stock to new 52-week highs.
The new target, up from a prior $169, implies more than 38 percent upside from Nebius’s closing price of $207.27 on Tuesday. The bank’s upgrade follows several others, including Citizens, which hiked its target to $270, and Bank of America, which lifted its price to $240.
The flurry of upgrades was triggered by Nebius’s strong first-quarter 2026 results, where the company reported revenue of $399 million, beating consensus estimates of $388.6 million. The company also disclosed that its AI revenue growth reached 684 percent, driven by large-scale contracts with customers like Meta.
A key driver for the increased optimism is Nebius's expanded power capacity guidance. The company now expects to have at least 4 gigawatts of contracted power by the end of 2026. This includes a new 1.2 GW site in Pennsylvania, its second gigawatt-scale campus in the U.S. alongside its facility in Missouri.
This rapid expansion has attracted investors, with shares soaring nearly 16 percent on Tuesday and adding another 11.8 percent in Wednesday trading. However, some analysts caution that the stock's valuation appears stretched, trading at 273 times operating cash flow. Funding for its aggressive expansion also remains a risk, with one estimate suggesting the company may need to raise between $5.6 billion and $7 billion in additional capital.
The upgrades signal growing confidence on Wall Street that Nebius can execute on its massive power pipeline to meet surging demand for AI computing. Investors will be closely watching the company’s ability to secure funding and manage project timelines for its new data center sites.
This article is for informational purposes only and does not constitute investment advice.
