Bank of America Names 2 Top Neocloud Stocks to Buy in 2026

Core Insights - Nebius Group is a Dutch-based tech firm specializing in AI infrastructure development, emerging from Yandex after the sale of its Russian assets [2] - The company positions itself as the 'ultimate cloud' by utilizing Nvidia's latest GPUs to provide a wide range of cloud-based services, focusing on AI developers' needs [1][7] - Nebius operates large-scale GPU clusters in data centers located in Europe and the US, with a significant investment of $2 billion from Nvidia [8] Company Performance - In its 4Q25 report, Nebius reported revenue of $227.7 million, which was a 547% increase year-over-year but missed forecasts by $15 million [9] - The company recorded an adjusted net loss of $173 million in the same quarter [9] - Nebius is strategically positioned in the rapidly growing AI Infrastructure-as-a-Service (IaaS) market, projected to exceed $419 billion by 2028 [10] Market Position - Nebius is part of the neocloud segment, which focuses on GPU-driven AI workloads, differentiating itself from hyperscalers by offering specialized, high-speed cloud services [3][5] - The neocloud market is expanding, with companies like Nebius building brands by supporting specific applications and regional compliance [5] - Nebius serves a diverse range of industries, including healthcare, robotics, finance, retail, and entertainment, enhancing its role in the global AI ecosystem [7] Analyst Insights - Bank of America's analyst Tal Liani highlights Nebius' fast growth and its potential to capture market share in the AI IaaS sector, supported by a customer base that includes major players like Microsoft and Meta [10] - The stock has a Buy rating with a price target of $150, indicating a potential upside of 30% over the next year [10][11] - Recent analyst reviews show a strong consensus rating of 8 to 1 in favor of Buy over Hold for Nebius shares [11] CoreWeave Overview - CoreWeave, founded in 2017, has transitioned from cryptocurrency mining to focus on GPU-based cloud infrastructure, becoming a $46 billion leader in the neocloud niche [11][12] - The company reported revenues of $1.57 billion in its 4Q25 report, a 110% year-over-year increase, and had $4.13 billion in available cash and liquid assets [14] - CoreWeave is well-positioned to capture share in the $79 billion AI IaaS market, supported by strategic alliances with top-tier companies like Nvidia and OpenAI [15] Financial Performance - CoreWeave's net loss per share in 4Q25 was ($0.89), missing forecasts by $0.21 [14] - The company has shown steadily increasing revenues since going public a year ago [13] - Analyst Tal Liani gives CoreWeave a Buy rating with a price target of $100, suggesting a 14.5% upside potential [15][16] Market Consensus - CoreWeave has a Moderate Buy consensus rating based on 23 recent analyst reviews, with 13 Buys, 9 Holds, and 1 Sell [16] - The stock is currently priced at $87.58, with an average target price of $112.81, indicating a potential 29% gain in the year ahead [16]