TLDR
- Nebius stock rose 5.2% in morning trading to $244.82 after BTG Pactual initiated coverage with a Neutral rating
- The move helped offset a Sell rating from Rothschild Redburn, which had set an $84 price target citing inflated AI cloud valuations
- Nebius announced GPU cloud price increases of roughly 20% effective October 1, its second hike this year
- Revenue jumped 454% to $582 million last quarter, but the company posted a net loss of $190 million
- The stock is trading at a forward P/E of around 45 and remains more than 20% below its 52-week high of $299.86
Nebius Group stock climbed 5.2% in morning trading on Monday, reaching $244.82, as a new Neutral initiation from BTG Pactual helped calm nerves after a bruising session Friday.
The prior day, Rothschild Redburn had slapped a Sell rating on the stock with a price target of $84, pointing to credit market warning signals and what it described as cyclically inflated valuations in the AI cloud space. That note rattled investors. BTG Pactual’s less pessimistic view gave buyers a reason to step back in.
The stock has more than doubled since the start of 2026, up over 170% year-to-date entering this week. Even so, it sits more than 20% below its 52-week high of $299.86.
Pricing Power Takes Center Stage
Nebius recently announced GPU cloud price increases of roughly 20% across key Nvidia and AMD compute instances, effective October 1. This is the company’s second such price hike this year.
Rather than spooking investors, the market is reading this as a sign of genuine pricing power. Analysts tracking the neocloud space have pointed out that customer demand visibility for Nebius extends beyond 24 months, which adds credibility to the move.
A bullish piece published Monday also cited Nebius’s Nvidia backing and revenue trajectory as reasons to look past short-term concerns.
The broader tech environment helped too. The Nasdaq was up 0.4%, with technology leading all groups. Anticipation around Meta Connect 2026, scheduled for September 23-24, lifted sentiment across AI infrastructure names.
Nebius’s earlier strategic partnership with Palantir, naming Nebius as its preferred sovereign AI infrastructure provider, also continued to support the bull case.
Valuation Remains a Sticking Point
Despite the rally, questions around valuation haven’t gone away. Nebius currently trades at a forward P/E of around 45, more than double the S&P 500 average of 20.
That premium reflects high growth expectations. In its most recent quarter, revenue came in at $582 million, up 454% year over year. Impressive, but that pace of growth is unlikely to hold indefinitely.
The bottom line is also a concern. Nebius posted a net loss of $190 million in the June quarter despite the rapid top-line expansion.
At a market cap of roughly $60 billion, the stock carries significant expectations. Any sign of slowing demand or weaker-than-expected results could weigh heavily on the price.
The Fed raised interest rates last week, and there have been growing calls for a slowdown in AI development spending. Both factors could reduce demand for Nebius’s compute services.
Rothschild Redburn’s $84 price target remains on the table as an extreme downside case, a level roughly 65% below where the stock traded Monday morning.
BTG Pactual’s Neutral initiation published Monday is the most recent analyst action on the stock.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
