The Israeli entrepreneur's stock soared by 200%, and Bank of America is certain: "This is not the end"
The cloud company founded by Israeli-Russian entrepreneur Arkady Volozh published quarterly results that beat forecasts, and the American bank maintains a buy recommendation. The stock has already jumped over 200% since the beginning of the year, but analysts are convinced there is still room to grow.
Nebius stock received a significant boost this week from Bank of America, which maintained its buy recommendation and raised the price target for the stock from $280 to $310. The new target implies a potential upside of nearly 20% relative to the price at the time of the report's publication.
The recommendation came immediately after the Dutch cloud company, which specializes in computing infrastructure for artificial intelligence, published second-quarter results that were stronger than expected.
The data presented by Nebius for the second quarter of 2026 exceeded analyst expectations on the two main fronts. Adjusted EBITDA totaled approximately $236 million, well above the forecast of about $169 million.
Revenue, which stood at approximately $582 million, also beat the Wall Street consensus, which stood at about $570 million. Alongside this, the company reaffirmed its annual guidance, a move intended to reassure investors who were concerned about the occupancy rate of new sites.
Tal Liani, the analyst at Bank of America who reviewed the report, wrote to clients that Nebius benefits from a rapidly expanding cloud infrastructure adapted to the needs of artificial intelligence, alongside a strong backlog of data centers deployed globally. According to him, the management's track record in executing plans, together with a unified end-to-end platform, create a sustainable competitive advantage that supports continued growth.
Liani highlighted a point that has concerned investors recently: management maintained the target of 800 megawatts to 1 gigawatt of connected electrical power by the end of 2026, a critical figure in a world where the availability of electricity has become the real bottleneck of the AI industry.
The company was founded by Arkady Volozh, the entrepreneur who previously built Yandex, the search engine dubbed the "Google of Russia," and moved to live in Tel Aviv back in 2014. After the Russian invasion of Ukraine, Volozh disconnected himself from the Russian assets, and from this move, Nebius was born.
The company has operations and offices in Israel as well, and it was even chosen to build the country's national supercomputer. Unlike giants such as Amazon, Microsoft, and Google, Nebius did not add AI to an existing cloud but built from scratch an infrastructure adapted precisely for training and running models, with Nvidia chips at its core.
The Bank of America recommendation reflects a broad sentiment on Wall Street: out of the 19 analysts covering Nebius, 13 recommend buy or strong buy. The stock has already jumped over 200% since the beginning of the year and over 240% in the last year, dizzying figures that remind how much the market prices in future success.
Those who manage a training fund or pension portfolio are exposed to this wave through American technology indices, and therefore benefit from the gains but are also exposed to a correction if the enthusiasm cools down.
