Nebius’ (NASDAQ: NBIS) remarkable stock market rally in the wake of the neocloud’s latest earnings led, by press time on August 13, to multiple analyst price target revisions, with a significant majority of the updates being bullish.
To begin with, Citi’s (NYSE: C) Tyler Radke affirmed his ‘Buy’ recommendation already on Wednesday, as well as his previous $278 forecast.
Thursday then brought multiple more bullish outlooks, with Tai Liani from Bank of America (NASDAQ: BAC) also issuing a positive rating, but raising the 12-month price target from $280 to $310 to reflect the stronger unit economics and increased revenue estimates following the quarterly results.
Additionally, Baird and Northland Securities analyst Nehal Chokshi also substantially lifted their own forecasts, with the former dropping the previous $250 in favor of $340, and the latter swapping $248 for $410.
Finally, Morgan Stanley’s (NYSE: MS) Ryan Lountzis went against the grain. Though his ‘Hold’ recommendation was not outright bearish, his $144 price target for the next 12 months was significantly lower than the other post-earnings predictions and the Wall Street average of $160.20.
Nebius stock price upsurge reinvigorates the AI trade
Elsewhere, Nebius stock recorded one of the fastest major rallies in the August market as its 34% Wednesday rally took the equity’s weekly gains to 35.30% and to a press time price of $266.61.
The move was primarily driven by robust earnings that featured a 454% upsurge in revenue relative to the same period in the previous year – a rise from $105 million to $582 million – and a lower per-share loss of $0.12.
Furthermore, the filing also helped reinvigorate the artificial intelligence (AI) sector as it came shortly after CoreWeave’s (NASDAQ: CRWV) own strong earnings.
Still, there remains room for caution due to the exceedingly high costs of the technology and its indeterminate returns, as well as the rising costs of insuring debt of even the largest hyperscalers like Nvidia (NASDAQ: NVDA).
In fact, in his latest media and short-trading blitz, Michael Burry not only added to his Nebius stock bearish bet, but also claimed to have heard echoes of Enron in the world’s largest company’s latest $500 billion AI infrastructure funding scheme.
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