Why Shares of Nebius Group Skyrocketed 64.3% in September

Core Insights - Nebius Group's stock experienced significant growth, rising over 25% in August and 64.3% in September, driven by a major contract with Microsoft [1][3][4] Company Developments - Nebius announced a $17.4 billion agreement with Microsoft to provide dedicated capacity for AI workloads from its New Jersey data center, effective for five years starting later this year [3][4] - The CEO of Nebius indicated that this deal is indicative of future contracts with leading AI labs and tech companies, highlighting the strong performance of its core AI cloud business [4] Analyst Sentiment - Analysts have responded positively to the Microsoft deal, with several firms raising their price targets significantly: BWS Financial increased its target to $130 from $90, DA Davidson to $125 from $75, and Northland to $206 from $77, reflecting a bullish outlook on Nebius stock [6][7][8] - Despite the stock's high valuation at 122 times sales, analysts suggest that the momentum may continue, although some investors may seek better buying opportunities elsewhere [6][9]