Bank of America resets Nebius stock price target after 454% surge
Mwangi Enos
Fri, 14 August 2026 at 8:37 pm GMT+5:30
5 min read
- NBIS
+7.26%
There are growth stocks. Then some stocks make you wonder if you’re reading the numbers correctly the first time. The latter is actually rare, and today we found that rare gem
Nebius Group (NBIS) just reported 454% year-over-year revenue growth. Its AI Cloud segment alone grew 514% year over year. The stock jumped 34% after the Q2 earnings. Absolutely beautiful from every angle
And then Bank of America analyst Tal Liani responded to the move by raising his price target to $310 from $280, maintaining his Buy rating, according to a note shared with me at TheStreet. Liani is a 4.7-star analyst ranked in the top 6% of all Wall Street analysts on TipRanks
At the close of $259.20 on the earnings date, that target implies nearly 20% additional upside in a stock already up 201% year-to-date
CEO Arkady Volozh didn’t bury the lead in the shareholder letter.
We closed our largest AI Cloud deals on our strongest terms to date, at prices that represent a step-change in the economics of our business
That phrase — step-change in economics — is the one I keep coming back to. Because when you dig into what Nebius actually reported, it’s not just growth
It was honestly absolute cinema. Its growth, with improving unit economics, is faster than anyone expected
Why Bank of America’s Liani sees more room to run in NBIS
Liani’s upgrade thesis rests on three pillars: Nebius’s AI-optimized cloud infrastructure, its global data center pipeline, and management’s execution on a unified platform.
That last point matters more than it sounds. Building GPU infrastructure at scale is one thing. And then building a full-stack platform that customers actually prefer over hyperscaler alternatives is another. The latter is considerably harder, and Nebius appears to be doing it
The Q2 numbers support the confidence:
Nebius AI Cloud revenue reached $575 million, accounting for 98% of total company revenue, with an annualized run rate of $3.0 billion, according to a Nebius Q2 earnings statement
Adjusted EBITDA margin on the AI Cloud business hit 50% in Q2, according to the shareholder letter.
For a company growing this fast, a 50% EBITDA margin is a clear signal that scale is working in its favor, not against it
My review of the deal economics is where I find the most compelling detail. Core AI Cloud deals averaged more than $20 million in revenue per megawatt (MW), with short-term capacity pricing reaching $40-50 million per MW, according to the same shareholder letter.
