Nebius Group N.V. (NASDAQ:NBIS) is highlighted in the AI Stocks Making Waves on Wall Street. Morgan Stanley analyst Josh Baer initiated coverage with an “Equalweight” rating and a price target of $126, emphasizing long-term metrics over near-term earnings for valuation. The company’s AI infrastructure scale-up potential is a key focus.

Baer notes Nebius’ strong position in AI infrastructure build-out, with significant capacity and rapid scalability. While financial performance may be pressured in the near term due to heavy capital expenditure and rising depreciation, the company’s broader software platform, diversified customer base, and exposure to new AI infrastructure demand are seen as long-term value drivers.

Despite Nebius Group’s ambitious $7-9 billion annual recurring revenue target for Q4 2026, some analysts are skeptical, describing it as “optimistic.” Questions remain on how the company will outperform expectations, especially as EBIT is expected to face pressure in the coming years due to increasing depreciation.

Based in Amsterdam, Nebius Group N.V. (NASDAQ:NBIS) develops and operates AI cloud infrastructure for training and inference of advanced machine learning models. While the company shows investment potential, other AI stocks may offer greater upside potential and lower downside risk, according to analysts. Explore a free report on the best short-term AI stock.

For more insights on AI stocks, check out 12 Hot AI Stocks to Keep on Your Radar and 11 AI Stocks Analysts Are Watching Closely. Disclosure: None.

Read more at Yahoo Finance: Morgan Stanley Initiates Nebius (NBIS) at Equalweight, Flags Long-Term AI Infrastructure Upside