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Markets are off to a sluggish start this week. The S&P 500 and Dow Jones Industrial Average are both trending lower shortly after Monday's trading session opened. But cloud computing stock Nebius Group (NBIS +0.03%) is moving decisively in the other direction, thanks to an analyst's auspicious outlook on the stock.
As of 11:01 a.m. ET, shares of Nebius are up 11.2%.
Image source: Getty Images.
Initiating coverage on artificial intelligence (AI) stock Nebius, Alexander Duval, an analyst at Goldman Sachs, assigned a buy rating and a $68 price target, which implies upside of 53.5% based on Friday's closing price. Through the first half of 2025, shares of Nebius had already risen nearly 100%.
Recognizing Nebius as a leader in the neocloud market, Duval based his favorable perspective on the company's full stack software offering and cost advantages, according to The Fly.
Providing high-performance infrastructure specifically designed for graphics processing units (GPUs), neoclouds are a niche of cloud computing uniquely suited for AI, machine learning, and other applications that require substantial computing power.
Analysts often have short investing horizons, so take Duval's price target with a grain of salt. But investing in Nebius looks like a good way to gain AI exposure. The company's merits and its ample growth prospects justify clicking the buy button.