Artificial intelligence infrastructure firm Nebius is rapidly pulling ahead of competitors, according to a new analysis from Citi Research, which believes the company still has considerable room for growth.
Shares of the Dutch-based company have already climbed more than 55% this year. The stock also surged 15% on Monday after Meta Platforms announced a long-term agreement to invest up to $27 billion in Nebius’ AI infrastructure.
Under the terms of the agreement, Nebius will supply $12 billion worth of dedicated computing capacity over the next five years, beginning early next year. Meta has also committed to purchasing as much as $15 billion in additional available computing capacity from the company.
Citi analyst Tyler Radke is particularly optimistic about Nebius’ prospects, noting that the company is well positioned to capture a larger share of the rapidly expanding AI computing market. On Monday morning, Radke initiated coverage of Nebius with a buy rating and set a price target of $169. Based on the stock’s most recent closing price of $112.95, that target implies a potential upside of about 49.6%.
“Nebius positions itself as an emerging AI hyperscaler, not just a GPUaaS provider, with a full-stack architecture that spans custom datacenter design, in-house hardware, orchestration, and an expanding inference and agentic services layer,” he wrote in a Monday note to clients.
Radke said his positive outlook is driven by several factors, including Nebius’ strong balance sheet, improving margins, early access to next-generation Nvidia chips, and its ability to scale efficiently with capital — allowing the company to grow faster than many of its rivals.
He also highlighted Nebius’ roughly 25% stake in ClickHouse, an open-source database management platform, which he described as “materially underrecognized” and potentially important to the company’s long-term expansion.
Citi’s projections estimate that Nebius could achieve double-digit profit margins by fiscal year 2029. The firm also expects the company’s revenue to grow at a compound annual rate of around 125% over the next five years.
“Citi forecasts tracked AI workloads rising from ~18GW in 2025 to ~110GW by 2030 (~44% CAGR), and we expect NBIS to outgrow the market by 2×, scaling to ~5GW of active power by 2030 (~93% CAGR), implying rising share in the global AI compute landscape,” Radke’s note reads.
Analysts surveyed by LSEG currently estimate that Nebius has about 8% upside potential, making Radke’s projection significantly more bullish than the broader consensus.
Investor excitement surrounding Nebius’ partnerships with major technology companies has already fueled strong stock performance throughout 2024 and 2025. In September, the company secured a multi-billion-dollar agreement to provide AI infrastructure to Microsoft.
