NBIS Stock Forecast & Price Target

Nebius Group demonstrated impressive financial growth with total revenue reaching $146.1 million, marking a substantial 237% year-over-year increase driven by the robust performance of its core business. The company is poised for future growth, particularly highlighted by a significant multiyear $17 billion revenue agreement with Microsoft, which is anticipated to enhance Nebius' backlog and revenue quality. Additionally, management's guidance suggests an annualized revenue run-rate of $7-9 billion by the end of CY26, supported by operational efficiencies that position Nebius to achieve double-digit returns on capital, significantly outperforming competitors in the sector.

Nebius Group has faced significant challenges in meeting demand, ultimately leading to a lowered revenue guidance of approximately $525 million for 2025, which reflects operational inefficiencies. The company's difficulties in securing sufficient funding and optimizing its cost structure raise concerns regarding its ability to scale profitably, particularly in attracting enterprise customers necessary for long-term stability amidst strong competition from existing hyperscalers. Additionally, due to its origins from Yandex, Nebius may encounter increased regulatory scrutiny and geopolitical risks that could further hinder its growth prospects and market positioning.