Is This the AI Infrastructure Stock Nobody Is Talking About?

• Nebius Group (NBIS) received its first analyst coverage from Cantor with an Overweight rating and $129 price target, positioning the AI infrastructure platform as a credible alternative to hyperscalers.

• Nebius is guiding for $7–$9 billion in annualized run-rate revenue by end of 2026 (versus $1.25B today) backed by $16–$20 billion in capex commitments, but investors should weigh substantial execution risks against Wall Street’s broader bullish consensus averaging $164.54 in price targets.

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Nebius Group (NASDAQ:NBIS) stock just got its first vote of confidence from Cantor, which initiated coverage with an Overweight rating and a $129 price target. For retirement-focused investors scanning the AI infrastructure landscape, this initiation is worth a closer look at a company that’s scaling fast but hasn’t yet become a household name.

Nebius stock closed at $125 on April 8, putting Cantor’s target modestly above the recent close. That said, the broader analyst community carries an average target of $164.54, suggesting Cantor’s initiation may be a conservative entry point into a name Wall Street is broadly bullish on.

Cantor’s Overweight initiation centers on Nebius Group’s positioning as a full-stack AI cloud infrastructure and GPU compute platform riding surging enterprise demand for AI compute capacity. The firm sees Nebius as a credible alternative to hyperscalers, and with capacity sold out in Q4 2025, the demand story is clear. Nebius isn’t struggling to find customers; it’s struggling to build fast enough to serve them all.

READ: The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

Nebius Group is a spinoff from Yandex, the Russian internet giant, and has reinvented itself as a pure-play AI infrastructure business. Its core product, Nebius AI Cloud, provides GPU-based compute, storage, and managed inference services. The company also holds stakes in Avride (autonomous vehicles), TripleTen (edtech), Toloka (data labeling), and ClickHouse (open-source analytics), though the cloud business drives roughly 94% of total revenue.

Nebius’s revenue tells the growth story clearly: Q4 2025 revenue reached $227.7 million, up 503.6% year-over-year, and the company exited 2025 with an annualized run-rate revenue of $1.25 billion. The company is also deploying NVIDIA (NASDAQ:NVDA) shares, with its hardware deployed aggressively, including plans to deploy Vera Rubin NVL72 systems in 2026.

Nebius has guided for an ARR target of $7 billion to $9 billion by end of 2026, a leap that would represent a dramatic scale-up from today’s run-rate. The company has committed $16 billion to $20 billion in capital expenditures to get there, including nine new data center sites across the U.S. and EMEA.

Cantor’s initiation arrives as Nebius stock is already up 56% year-to-date, so the market has been waking up to this story even before formal analyst coverage arrived.

Nebius Group is a high-conviction growth story with real execution risk attached. The balance sheet carries $3.68 billion in cash, and CEO Arkady Volozh has stated “2025 was our first full year of operations, a year with exceptional growth and execution.” That said, Nebius’s free cash flow was -$1.22 billion in Q4 alone, and the capex runway is enormous.

All in all, if you believe AI infrastructure demand will remain insatiable and that Nebius can execute on its capacity buildout, Cantor’s initiation offers a grounded entry thesis. If capex execution or customer concentration concerns you, the risks here are real and worth weighing carefully before sizing a position.

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