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Investing.com -- Goldman Sachs has initiated coverage on Nebius Group (NASDAQ:NBIS) with a “buy” rating, pointing to the company’s position as a leading provider of AI infrastructure and forecasting over 50% upside from current levels.
With a market capitalization of $10.5 billion, Nebius operates in the AI Neocloud market, offering outsourced access to GPU computing power via the cloud.
Analyst Alex Duval views the company as a direct beneficiary of rising demand for generative AI and the growing need for specialized GPU infrastructure.
According to the initiation note, Nebius’ key advantages include a full-stack software offering, cost efficiencies, and the ability to operate at scale.
These features, Duval writes, position the company to serve the increasing number of enterprise and developer clients seeking access to AI compute without investing in their own hardware.
Duval sees a favorable risk/reward skew for investors, estimating a 4:1 upside-to-downside ratio between bull and bear scenarios.
He also flags that Nebius is currently trading at 3x EV/Sales, well below its closest peer CoreWeave, which trades at 5x.
Goldman’s report identifies a clear path to growth catalysts, including potential capital raises, expanded infrastructure capacity, and global market entry.
These factors, Duval suggests, could further support revenue growth and valuation upside.
Despite recent share price gains, the brokerage maintains that Nebius remains attractively priced relative to peers, particularly given its role as a pure-play in AI compute infrastructure.