Nebius stock surges on 454% revenue growth; BofA raises target to $310
In brief
- Nebius Q2 2026 revenue hit $582.3M, up 454% YoY, with $236.2M adjusted EBITDA.
- Bank of America raised price target from $280 to $310 with Buy rating.
- Stock closed at $259.20, up 200% YTD, but faces Michael Burry short pressure.
- Nebius guided FY2026 revenue $3–$3.4B; annualized run-rate $7–$9B.
Analyst Upgrade Amid Strong Fundamentals
Bank of America raised its price target from $280 to $310, with analyst Tal Liani maintaining a Buy rating on the stock. The move reflects confidence in Nebius's core business model, which centers on large-scale GPU clusters and cloud services built for enterprise AI workloads.
Yet the stock closed near $259.20 after the earnings release, leaving upside to the new target but also underscoring investor caution. Nebius is already up more than 200% year-to-date, and the company's guidance suggests continued momentum. Full-year 2026 revenue is expected to reach $3 to $3.4 billion, with an annualized run-rate revenue expectation of $7 to $9 billion.
The Contrarian Bet
The bullish call from Bank of America doesn't go unchallenged. Michael Burry has increased his short position on NBIS at around $247 per share, betting against the momentum. Burry, known for identifying market bubbles, sees risk in the current valuation even as fundamentals improve.
This divide—between the analyst setting a $310 target and a prominent short seller wagering on decline—reflects the broader tension in AI infrastructure valuations. Nebius's trajectory from Yandex spinoff to high-growth cloud player is genuine. Whether the market has priced that growth fairly remains an open question.
