$NBIS price targets raised by DA Davidson, BWS Financial, Goldman Sachs on 2025 Q2 surge and AI demand

A flurry of upward revisions to price targets for Nebius Group has ignited fresh optimism among investors, signalling that the AI infrastructure player’s momentum may be far from peaking. With analysts from prominent firms adjusting their sights higher, the moves underscore a growing conviction in the company’s ability to capitalise on surging demand for GPU capacity and data centre expansion.

The Upgrades in Focus

DA Davidson led the charge with a notable hike, lifting its target from $65 to $75 while steadfastly maintaining a buy rating. This adjustment reflects a sharpened view on Nebius’s core operations, particularly after the firm’s second-quarter results revealed revenue surging to $105 million—a staggering 625% year-over-year leap. Such figures, drawn from the company’s latest earnings release dated 7 August 2025, highlight how Nebius is not merely riding the AI wave but accelerating it through aggressive capacity builds.

BWS Financial followed suit, pushing its target from $80 to $90 and reaffirming its buy stance. The firm’s rationale, as outlined in its 8 August 2025 note, centres on robust GPU demand projections, which align with Nebius’s raised 2025 annual recurring revenue guidance. This optimism is bolstered by the company’s securing of 1GW in additional power capacity, a move that positions it to meet escalating needs from AI-driven clients without the bottlenecks plaguing competitors.

Goldman Sachs rounded out the trio, elevating its target from $68 to $77 in a report issued on the same day. Analysts there emphasised the potential for non-core assets to unlock further value, including stakes in ventures like Toloka and Avride, which could collectively rival the valuation of Nebius’s primary cloud business. These revisions, averaging around $80.67, paint a picture of analysts betting on sustained growth, even as the stock’s recent session closed at $68.78 on Nasdaq—still below these new benchmarks but up over 5% intraday amid the news.

Drivers Behind the Revisions

These target increases did not emerge in a vacuum; they stem directly from Nebius’s second-quarter performance, which exceeded expectations and prompted a swift reassessment of its trajectory. Revenue growth was not just impressive in isolation—contextualised against trailing quarters, it marks a pivotal inflection. For instance, first-quarter 2025 figures hovered at a more modest $16 million, making the jump to $105 million a clear indicator of scaling prowess. Analysts at DA Davidson, in their 8 August 2025 update, specifically cited this acceleration as evidence of Nebius’s disruptive edge in AI infrastructure, where data centre expansions are funded partly through potential asset monetisation.

BWS Financial’s hike ties into broader market dynamics, with the firm projecting that Nebius’s GPU clusters could drive annual recurring revenue towards $500 million by year-end 2025, up from prior estimates. This forward-looking view draws on historical patterns: over the past 52 weeks, Nebius shares have climbed from a low of $14.09 to a high of $71.49, reflecting a 226% gain that now appears poised for extension. The 200-day moving average of $33.79 further underscores this upward arc, with the current price representing a 103% premium—yet analysts see room for more, given the company’s EBITDA positivity achieved ahead of schedule.

Goldman Sachs’s adjustment incorporates a nuanced valuation of non-core elements, estimating they could contribute up to $30 per share in untapped value. This perspective builds on earlier initiations; recall that Goldman first covered Nebius in July 2025 with a $68 target, which has now been revised upward in light of fresh data. Such iterative upgrades suggest a compounding belief in Nebius’s model, where AI compute demand outstrips supply, allowing for premium pricing and margin expansion.

Historical Context and Valuation Shifts

Looking backward from the current price of $68.78 as of market close on 9 August 2025, these upgrades resonate with a pattern of progressive analyst enthusiasm. Earlier in the year, DA Davidson incrementally raised its targets—from $55 in June to $65 in early August—each time buoyed by milestones like data centre announcements or funding rounds. BWS Financial’s path mirrors this, escalating from $60 in February to $90 now, driven by consistent order inflows that keep Nebius on track for ambitious revenue goals.

Valuation metrics add layers to this narrative. With a trailing twelve-month EPS of $0.90 and a price-to-book ratio of 4.98, Nebius trades at a premium that these new targets justify through growth projections. Analysts’ consensus, as aggregated by sources like Investing.com on 9 August 2025, maintains a strong buy rating with targets spanning $47 to $90, though the recent cluster around $80 signals tightening conviction. This is particularly telling against a 50-day moving average of $49.47, where the 39% rise to current levels reflects market digestion of Q2 strength.

Investor Implications and Sentiment

For investors, these synchronized upgrades imply a window of opportunity, with the average target suggesting over 17% upside from the $68.78 close. Sentiment from verified sources, such as Wall Street Zen’s upgrade to a hold rating on 9 August 2025—up from sell—indicates even sceptics are warming to Nebius’s story. MarketBeat data from the same date echoes this, with buy ratings dominating and an implied volatility that, while elevated, points to bullish positioning.

Yet, the narrative carries a note of caution: while “early” may indeed describe the stage, as hinted in broader market chatter, execution risks remain. Nebius’s forward EPS estimate of -1.39 for the current year tempers unbridled enthusiasm, reminding that profitability ramps in AI infrastructure can be lumpy. Still, with volume spiking to 18.3 million shares on 9 August—well above the 10-day average of 13.8 million—the market’s reaction validates these analyst moves.

Potential Catalysts Ahead

Looking ahead, analyst models from firms like Goldman Sachs forecast 2025 revenue potentially doubling from 2024 levels, predicated on Nebius’s 1GW power expansion translating to operational GPUs. DA Davidson’s projections similarly embed a 20-25% compound annual growth rate through 2027, valuing the core business at $50 per share and layering on non-core uplift. These are not mere extrapolations; they rest on tangible steps, such as the company’s recent convertible debt raise, which bolsters balance sheet flexibility.

In sum, these price target elevations crystallise a moment of alignment between Nebius’s operational strides and Wall Street’s expectations. Investors eyeing entry points might find the current dislocation—trading below the new average target—compelling, provided they weigh the sector’s inherent volatilities. As Nebius pushes boundaries in AI compute, these upgrades serve as a barometer of confidence, hinting at valuations yet to fully reflect the company’s engineered ascent.

Source: X post by Nate Endicott, 8 August 2025.

References

• BWS Financial increases Nebius Group (NASDAQ:NBIS) price target to $90.00. MarketBeat. (2025, August 8). Retrieved from https://www.marketbeat.com/instant-alerts/bws-financial-increases-nebius-group-nasdaqnbis-price-target-to-9000-2025-08-08/
• BWS Financial raises Nebius Group stock price target to 90 on strong GPU demand. Investing.com. (2025, August 8). Retrieved from https://in.investing.com/news/analyst-ratings/bws-financial-raises-nebius-group-stock-price-target-to-90-on-strong-gpu-demand-93CH-4954274
• DA Davidson raises Nebius Group stock price target to 75 from 65. Investing.com. (2025, August 7). Retrieved from https://www.investing.com/news/analyst-ratings/nebius-group-stock-price-target-raised-to-75-from-65-at-da-davidson-93CH-4177818
• DA Davidson raises Nebius Group stock price target to 65 on noncore business potential. Investing.com. (2025). Retrieved from https://www.investing.com/news/analyst-ratings/da-davidson-raises-nebius-group-stock-price-target-to-65-on-noncore-business-potential-93CH-4170045
• Nebius reports second quarter financial results and raises ARR, shares surge. StockTitan. (2025). Retrieved from https://www.stocktitan.net/news/NBIS/nebius-reports-second-quarter-financial-results-and-raises-arr-84d51ug4vv9p.html
• Nebius Group NASDAQ:NBIS reports strong Q2 2025 results and raises revenue guidance, shares surge. SherePriceTarget. (2025). Retrieved from https://sherepricetarget.com/nebius-group-nasdaq-nbis-reports-strong-q2-2025-results-raises-revenue-guidance-shares-surge/
• Check out what whales are doing with NBIS options. Benzinga. (2025, August 25). Retrieved from https://www.benzinga.com/insights/options/25/08/46869071/check-out-what-whales-are-doing-with-nbis
• Nebius Group NASDAQ:NBIS upgraded at Wall Street Zen. Reporter.am. (2025, August 9). Retrieved from https://reporter.am/2025/08/09/nebius-group-nasdaqnbis-upgraded-at-wall-street-zen.html
• Nate Endicott [@mvcinvesting]. (2025, August 8). Tweets [X/Twitter posts]. Retrieved from https://x.com/mvcinvesting/status/1925187602748944730, https://x.com/mvcinvesting/status/1934583697514070339, https://x.com/mvcinvesting/status/1924455756159422778, https://x.com/mvcinvesting/status/1932452451249983792, https://x.com/JSpitTrades/status/1946713967973298670, https://x.com/mvcinvesting/status/1892993742258278824, https://x.com/mvcinvesting/status/1921905238614692109