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Investing.com - BWS Financial has raised its price target on Nebius Group (NASDAQ:NBIS) stock to $130.00 from $90.00 while maintaining a Buy rating following a major contract announcement. The new target represents significant upside from the current price of $88.35, with the stock already showing impressive momentum, having gained nearly 129% over the past six months.
The price target increase comes after Nebius Group secured its first hyperscaler contract with Microsoft (NASDAQ:MSFT), valued at up to $19.4 billion over five years.
According to BWS Financial, the Microsoft deal represents a significant milestone for Nebius Group and will result in Microsoft consuming nearly the entire capacity of NBIS’s New Jersey facility.
The research firm noted that this contract could pave the way for other hyperscalers to consider Nebius Group as an option as the company expands to more locations across the United States.
BWS Financial highlighted that Nebius Group has stated it aims to develop 1 gigawatt of capacity within the next few years.
In other recent news, Nebius Group has been at the center of significant developments. The company announced a major five-year contract with Microsoft valued at $17.4 billion, with potential to reach $19.4 billion, to provide AI compute capabilities. This deal is seen as a major growth catalyst for Nebius Group’s AI Infrastructure business. Following this announcement, both Goldman Sachs and DA Davidson reiterated their Buy ratings on the stock, with price targets set at $77 and $75, respectively.
Additionally, Nebius Group reported strong second-quarter 2025 results, surpassing core revenue expectations and accelerating data center expansion plans. In response, DA Davidson increased its price target from $65 to $75. BWS Financial also raised its price target to $90, citing strong demand for Nebius Group’s GPU capacity, which sold out immediately. These developments highlight Nebius Group’s ongoing momentum in the tech industry.
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