Nebius Group N.V. (NBIS) Up More Than 60% in 6 Months, Here’s What You Need to Know

Group 1 - Nebius Group N.V. (NASDAQ:NBIS) has experienced significant growth, gaining over 80% in the past 6 months, and is rated as a Strong Buy by 75% of analysts covering the stock [1] - Morgan Stanley initiated coverage with a Market Perform rating and a price target of $126, highlighting the company's strong position to scale its AI infrastructure due to its software platform and diverse customer base [2] - The company also benefits from non-core businesses and equity stakes that enhance its overall value, despite being rated with Market Perform [3] Group 2 - Challenges cited by Morgan Stanley include rising depreciation from a 4-year asset life, which pressures margins and EBIT, and expectations of negative free cash flow due to heavy capital expenditures for AI infrastructure [4] - The firm expressed skepticism regarding Nebius Group N.V.'s ambitious target of $7 billion to $9 billion in annual recurring revenue (ARR) by Q4 2026, suggesting it may be overly optimistic [4] - Nebius Group N.V. is headquartered in Amsterdam and focuses on developing and operating AI cloud infrastructure for training and inference of advanced machine learning models [5]