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Nebius Rally Faces Valuation Test as Growth Bets Swell

Explosive growth projections run up against heavy spending for new data centers.

Overview

  • Nebius shares have nearly doubled this year, as investors bet on its AI-first cloud infrastructure business, according to Yahoo Finance.
  • Freedom Capital Markets recently cut the stock to Hold while lifting its price target to $154, citing a stretched valuation even as it raised 2026–2027 revenue and EBITDA estimates.
  • Wall Street models call for extreme growth, with revenue up about 522% in 2026 and 195% in 2027, which would take sales from roughly $530 million in 2025 to about $9.7 billion by 2027.
  • Nebius remains unprofitable and plans to scale from seven operational data centers in 2025 to 16 by the end of 2026 to meet demand for AI compute.
  • With shares trading near 73 times sales, views now diverge between bullish voices like Jim Cramer and analysts warning of near-term valuation risk.