Why Nebius Group Is One of the Top AI Stocks to Watch

Core Viewpoint - Nebius Group is positioned to advance its stock price following the divestiture of its Russian operations, which closed last year, and is now focused on its AI agenda [1] Company Overview - Nebius Group's stock price is currently at $50.46, reflecting a 7.07% increase, with a 52-week range between $14.09 and $55.04, and a price target of $66.50 [2] - The company is now a more focused entity, pursuing the development of advanced HPC data centers for the AI industry, and is recognized as a Reference Platform NVIDIA Cloud Partner [2][3] Financial Performance - In FQ1, Nebius Group reported a revenue surge of 385% year-over-year, driven by significant increases across all segments, particularly in AI infrastructure [4] - The company anticipates full-year revenue between $500 million and $700 million, indicating a forecast for substantial sequential acceleration [4] Balance Sheet and Risks - The balance sheet is strong, with ample cash and low leverage, although there is a risk of dilution due to an increase in share count [5] Analyst Sentiment - Analysts have responded positively, with increased coverage and upgrades to Buy, forecasting a 35% upside at consensus [6] - Institutional ownership is currently at 22%, with significant buying activity noted in Q2 [6] Future Outlook - Nebius Group is on track for hypergrowth and profitability, with expectations of positive EBITDA in the second half of the year [7] - The consensus for F2025 is about 15% below the mid-point of the guidance range, suggesting potential for significant outperformance [7] Market Trends - Chart analysis indicates a bullish market trend, with a critical resistance point near $51, suggesting potential for a significant price increase if surpassed [8]