Nebius Group, a European AI neocloud company, saw its stock rally by 13.7% on Friday, following positive analyst coverage and being identified as a potential acquisition target in 2026. The overall AI neocloud sector also received a boost from a peer receiving an analyst upgrade. Nebius and other neocloud stocks have experienced significant gains in 2025 but have seen pullbacks in recent months amid concerns about debt funding and ties to OpenAI.

Analyst Tyler Radke renewed coverage of Nebius’s peer CoreWeave, giving it a “Buy” rating and a $135 price target, resulting in a 22.5% increase in the stock price. Another analyst mentioned Nebius as a potential acquisition target for major cloud hyperscalers like Amazon or Microsoft in 2026. Despite the recent pullback, there are no signs of a slowdown in demand for AI compute, which could impact the future trajectory of Nebius and its neocloud peers.

Read more at Nasdaq: Why Nebius Rallied Today | Nasdaq