BofA expects Nebius Volozh shares to rise more than 30%. Is it too late to invest?

Bank of America initiated analyst coverage of Arkady Volozh's Nebius Group cloud provider Nebius with a "buy" recommendation and a target price of $150 per share. The company is becoming one of the leaders in global computing for artificial intelligence, the analysts noted, SeekingAlpha writes. The target they set for Nebius securities implies their growth potential of 31.6% relative to the last closing price.

Bank of America analysts led by Tal Liani pointed out that Nebius operates in one of the fastest-growing segments of cloud computing - "infrastructure-as-a-service for AI" (AI Infrastructure-as-a-Service (IaaS). By building and managing large data centers, the company allows customers to train and run AI models without having to invest in their own infrastructure. According to analysts, this offers significant growth potential for Nebius.

"The total market for cloud infrastructure-as-a-service (IaaS), including AI solutions, could exceed $419 billion by 2028 amid increasing complexity of AI models and accelerating demand from companies," noted Tim Liani and his team. Nebius - "as one of the few platforms originally built for distributed computing with high graphics processing unit (GPU) utilization," whose customers include Microsoft and Meta - is "well positioned to build market share," according to analysts.

Shares of Nebius at the trades on March 24 added about 0.29% (at the pre-market they grew by 2%). Since the beginning of the year, the company's shares have gained more than 35%.

On March 16, Nebius announced a new five-year agreement with Meta Platforms to supply the company with up to $27 billion worth of artificial intelligence infrastructure. Nvidia on March 11 also announced plans to invest $2 billion in Volozh's company. The companies will collaborate on AI infrastructure deployment, compute cluster management, inference tasks (generating responses to user queries), and the design and support of so-called AI factories

Nebius started trading on Nasdaq as an independent company only in 2024, after it got rid of its Russian assets. In 2025, the company's shares rose more than 350%. About 40% of the company's expected recurring revenue in 2026 will have to come from two Nebius clients - Meta and Microsoft, Barron's notes.

On March 18, Citi analysts for the first time started covering Nebius shares with a "buy" recommendation. They expect the price of the company's securities to grow by 48% relative to the closing price on March 23.

The majority of analysts who follow Nebius stock advise buying it - 12 out of 15, MarketWatch data show. Two more recommend hold, one recommends sell. The Wall Street consensus target price is $174.6, which is 53% above the securities' current value.

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