NBIS Stock Wobbles After 50% Rally In 5 Days – But Analysts Still Back AI Infra Plays

• NBIS stock has gained nearly 50% in the last five sessions.
• Analysts, on average, forecast a nearly 20% rise in shares over the next 12 months.
• Stocktwits sentiment for NBIS improved to ‘neutral.’ 

Nebius Group shares dropped 1% in premarket trading on Friday, after the stock rallied 9% the previous day on reports that the neocloud firm was in talks for acquisition. 

Nvidia-backed Nebius is in talks with Israel-based AI startup AI21 Labs for a potential deal, The Information reported, citing sources, in a move investors view as an ambitious push for growth.

Nebius is on a hot streak amid momentum from Nvidia’s $2 billion investment, a $15 billion cloud deal with Meta Platforms, and the announcement of a major AI data center project in Finland.

NBIS Hot Streak

Shares have risen for five days straight, cumulatively gaining nearly 50% until Thursday. 

Meanwhile, Cantor Fitzgerald initiated coverage of Nebius on Thursday with an ‘Overweight’ rating and a $129 price target, which is about 5% lower than the stock’s last close.

The research firm said it sees AI infrastructure as "an attractive place to invest," given the proliferation of AI across nearly every business, sector, and economy. Investors are somewhat agnostic about which AI app or AI model emerges victorious and envision a persistent supply-demand imbalance for the next five-plus years, which will keep cloud pricing strong, it added.

Retail, Analyst View on NBIS

On Stocktwits, the retail sentiment for NBIS improved to ‘neutral’ from ‘bearish’ the previous day, with the ticker drawing heavy buzz Friday morning.

“$NBIS remember everyone to keep using Claude daily, even just run empty prompts so Clickhouse usage goes up and dollars go directly to Nebius balance sheet,” a user said.

Another wrote: “NBIS up 47% since the war started and oil price still surging!”

Despite the rally, analysts, too, remain bullish. Twelve of the 15 analysts covering the stock recommend ‘Buy’ or higher, two recommend ‘Hold’, and one advises ‘Strong Sell,’ per Koyfin. Their average price target of $162 implies a 19% upside from the stock’s last close.

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