Key Highlights
- Bank of America starts coverage on Nebius (NBIS) with Buy rating and $150 target price, suggesting approximately 30% potential gain
- BofA maintains Buy recommendation on CoreWeave (CRWV) with $100 target price (roughly 22% upside potential)
- Nebius introduces AI Cloud 3.5, incorporating serverless AI capabilities into its comprehensive cloud infrastructure
- Platform expansion includes integration of Nvidia’s RTX PRO 6000 Blackwell Server Edition GPUs
- Company sets sights on 1GW immediate capacity target while pursuing 3GW+ pipeline expansion
Nebius Group (NBIS) stock captured investor attention Thursday following Bank of America’s initiation of coverage featuring a Buy recommendation and $150 price objective. This valuation represents approximately 30% appreciation potential from present trading levels.
The analyst upgrade coincided with Nebius unveiling AI Cloud 3.5, representing the newest evolution of its comprehensive cloud infrastructure platform.
This fresh release brings serverless AI computing capabilities to market, enabling development teams to deploy computing workloads nearly instantaneously without manual infrastructure configuration requirements. According to Nebius, the platform automatically manages infrastructure provisioning and runtime operations, allowing engineering teams to concentrate on application development rather than environment administration.
The serverless functionality is presently accessible through public preview channels.
AI Cloud 3.5 further expands the platform by incorporating Nvidia’s RTX PRO 6000 Blackwell Server Edition into its graphics processing unit portfolio. This processor targets AI inference operations, industrial automation systems, physical AI modeling, visual rendering tasks, and pharmaceutical research applications.
The platform update additionally introduces a Data Transfer Service feature. This tool streamlines data movement and synchronization between external storage infrastructure and Nebius cloud facilities, reducing administrative burden for organizations operating across distributed computing environments.
Bank of America’s Assessment of Nebius
BofA characterizes Nebius as a platform-focused competitor within a supply-limited AI infrastructure marketplace. The financial institution positions the company at an earlier developmental phase compared to CoreWeave, currently commanding lower valuations as expansion efforts continue.
Nebius projects triple-digit revenue acceleration from its current foundation. Management has established a near-term infrastructure capacity objective of 1GW, with ambitions to expand the development pipeline beyond 3GW.
Bank analysts noted that achieving scale will demand substantial capital investments, with financing arrangements carrying significant costs. Market pricing pressures and intensifying competitive dynamics within the AI cloud sector represent additional risk factors requiring monitoring.
Nevertheless, BofA positions Nebius as a primary beneficiary of continuing AI infrastructure expansion — assuming operational execution remains consistent.
CoreWeave Receives Continued Support
BofA’s research coverage also maintained its Buy stance on CoreWeave (CRWV) accompanied by a $100 price objective. The bank forecasts CoreWeave will achieve 144% revenue growth during 2026 and 86% expansion in 2027 while pursuing additional infrastructure capacity.
CoreWeave commands recognition as the more established operator between the two companies, having successfully transformed contract backlog into actual revenue streams. BofA applies valuation methodologies comparable to established growth enterprises for CoreWeave, whereas Nebius continues trading at discounted multiples.
Nebius’s AI Cloud 3.5 serverless computing capability became available through public preview channels effective today.
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
