Rosenblatt recommended buying Nebius stock: its revenue is expected to grow by 98% per year

The research firm Rosenblatt Securities expects the cloud computing company Nebius to experience rapid business growth amid rising spending on artificial intelligence infrastructure. Analysts have forecast that Nebius’s revenue will grow by an average of 98% per year from 2026 to 2030. Meanwhile, Nebius continues to expand its capacity, develop inference technologies, and secure funding.

Rosenblatt has initiated coverage of Nebius Group shares with a "Buy" rating and a price target of $304, according to Investing. This price target implies an increase of approximately 28% from the most recent closing price.

Rosenblatt considers Nebius one of the most promising companies in the cloud services sector, alongside CoreWeave. Analysts note that the company is well-positioned to capitalize on the growth in large-scale infrastructure spending for training and deploying AI models, according to Investing. According to Rosenblatt’s estimates, Nebius’s active capacity amounts to approximately one-sixth of CoreWeave’s 1.5 GW of capacity, which is already generating revenue. However, Nebius itself does not publicly disclose the size of its capacity, notes Investing.

The company has contracts for 3.5 GW of capacity, approximately 75% of which is expected to be commissioned at facilities wholly owned by Nebius. In the second quarter of 2026, the company’s revenue increased 5.5-fold year-over-year, and Rosenblatt expects it to increase 6.5-fold by the end of the year.

Analysts at Rosenblatt forecast that Nebius’s revenue will grow by an average of 98% annually over the next five years. According to their estimates, the company may raise additional debt or equity financing to expand its infrastructure. For example, in August, Nebius completed a $5.75 billion convertible debt transaction.

Other analysts also generally view the company’s prospects positively. On September 10, Truist Securities initiated coverage of Nebius with a “Buy” rating and a price target of $355, which is 49% above the latest closing price. In August, DA Davidson lowered its price target for the company’s stock from $250 to $175, but a week later restored it to its previous level while maintaining a neutral rating (equivalent to a “hold” recommendation).

On October 1, Nebius announced the acquisition of the Israeli startup Inferize. Its technology reduces the time required to deploy large AI models. The deal is aimed at expanding the cloud provider’s capabilities and optimizing the deployment and scaling of AI models. Since the beginning of the year, the company has acquired three other startups: Tavily, Eigen AI, and Clarifai.

In March, Nvidia announced plans to invest $2 billion in Nebius. The companies also agreed to collaborate on infrastructure deployment, computing cluster management, and inference tasks.

During trading on October 8, Nebius shares fell by about 6%. Analysts' average price target is $237, which is 20% higher than the previous session's closing price.

According to MarketWatch, 17 analysts recommend buying Nebius stock, seven advise holding it, and two more recommend selling it.

This article was AI-translated and verified by a human editor