Goldman Sachs Sees 53% Upside In Nebius Group, Calls AI Infrastructure 'Undervalued'

Goldman Sachs GS has initiated coverage on Nebius Group NBIS with a Buy rating and a price target of $68. This suggests a potential upside of about 53.49% from the stock’s closing price on Friday.

What Happened: Goldman Sachs identified Nebius as a major player in the AI Neocloud market, offering AI GPU infrastructure rental services that support the fast-growing Generative AI sector, reported Investing.com.

The investment bank emphasized Nebius's key strengths, including its comprehensive software suite, cost efficiency, and proven ability to operate at scale—advantages that set it apart from other GPU rental providers. While the stock has seen recent gains, Goldman Sachs believes Nebius's AI infrastructure business is still undervalued relative to its industry peers.

Goldman Sachs anticipates a "supportive catalyst path" over the next 12 months, which it believes will drive further stock outperformance and reinforce the firm's positive risk-reward outlook.

Why It Matters: Nebius Group has been making significant strides in the AI industry. The company’s stock has seen a staggering 385% year-over-year revenue growth in its latest quarter. In the first quarter of 2025, the company posted revenues of $55.3 million, marking a 385% increase compared to the same period last year.

Nebius Group is among the earliest adopters of Nvidia Corp.’s NVDA full-stack approach to AI infrastructure and is a Reference Platform NVIDIA Cloud Partner.