NBIS Stock Rockets on $1B AI Investment: Analyst Predicts 75% Upside
Colaboradores
Shares of Nebius (NBIS) experienced a significant surge of approximately 20% on Thursday following the announcement of a successful $1 billion funding round secured through convertible notes. This investment is earmarked to bolster the company's artificial intelligence initiatives and capitalize on the booming AI market.
Nebius Secures $1 Billion for AI Expansion
The cloud infrastructure provider stated that the newly acquired capital will be strategically deployed to accelerate its AI development roadmap. Nebius aims to solidify its position in the rapidly expanding AI sector and capitalize on long-term growth prospects. This move signals a strong commitment to innovation and expansion within the AI landscape.
New Chief Revenue Officer Appointed
Adding to the positive momentum, Nebius has appointed Marc Boroditsky as its Chief Revenue Officer. Boroditsky brings a wealth of experience, having previously spearheaded Twilio's (TWLO) revenue organization. During his five-year tenure at Twilio, he played a pivotal role in expanding the company's paying customer base and achieving substantial revenue growth. Nebius anticipates that Boroditsky's leadership will be instrumental in supporting its global expansion strategies.
Analyst Bullish on NBIS: 75% Upside Potential
Following these key announcements, Arete analyst Andrew Beale initiated coverage of Nebius with a Buy rating and a price target of $84. This target suggests a potential upside of nearly 75% from current trading levels. Beale further highlighted Nebius's compelling value proposition, arguing that it offers a more attractive investment opportunity compared to CoreWeave (CRWV), which he rated Neutral with a price target of $130.
NBIS Stock Performance: Impressive Gains
The nearly 20% surge on Thursday extended Nebius shares' impressive year-to-date gain to approximately 73%. The stock has demonstrated remarkable performance over the past 12 months, climbing roughly 108%. Trading volume reached a substantial 28 million shares on Thursday, nearly tripling the three-month daily average, indicating strong investor interest and confidence in the company's future prospects.