Investors Are Watching Nebius Group Stock: Here's Why

Nebius Group N.V. (NASDAQ:NBIS) shares have been trending in recent weeks as the stock has surged from the low $20 range to above $35. Here’s a look at what’s going on.

What To Know: Nebius shares have seen increased attention from retail traders in recent weeks, specifically on social media platform X where several investors are discussing growth potential and making the case for owning the stock long term.

The stock has risen approximately 67% over the past month and nearly 30% over the past week after the company announced a strategic investment from Bezos Expeditions, the investment arm of Amazon's Jeff Bezos. The investment also includes participation from a Shopify executive and is specifically focused on the company’s AI data solutions business Toloka.

The company is also backed by Nvidia, which participated in a $700 million capital raise with a group of investors in December. Nebius shares reached an all-time high in mid-February after a regulatory filing from Nvidia showed that the company was holding approximately 1.19 million shares of the AI infrastructure company.

With the 13-F filing deadline set for May 15, it’s likely that Nvidia will soon report updated holdings for the first quarter. Investors will be watching closely to see if Nvidia still holds a stake in Nebius.

Nebius shares retreated from highs after the company reported fourth-quarter financial results in February. Total revenue increased 466% year-over-year, driven by the company’s core AI infrastructure business, which grew 602% year-over-year. It was also hurt by a broader market sell-off in anticipation of tariffs from the Trump Administration.

“The fourth quarter was extremely eventful for Nebius. Our shares resumed trading on Nasdaq in October, and we went on to raise $700 million in December in an over-subscribed capital raise from top-tier partners including Nvidia, Accel and Orbis,” the company said in its fourth-quarter earnings release.

"In Q4 we also focused on building out our sales function, and we are now seeing the results. More clients are coming onto the platform, and our more diversified customer base is already contributing to strong growth in annualized run-rate revenue (ARR). Based on contracts already in place, March ARR will be at least $220 million, and we have additional potential deals in the pipeline.”

Nebius competitor CoreWeave, which is also backed by Nvidia, reported its first quarterly results as a public company on Wednesday and announced new details of its deal with OpenAI on Thursday, which appears to be adding to the excitement surrounding the sector.

Nebius has a Street-low price target of $30 and a Street-high target of $60 from analysts, according to Benzinga data. Most recently, Northland Capital Markets initiated coverage on the stock with an Outperform rating and a target of $34. The coverage came a day ahead of the investment announcement from Bezos Expeditions.

NBIS Price Action: Nebius Group shares were down 0.29% at $36.02 at the time of publication Thursday, according to Benzinga Pro.

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