NBIS: BNP Paribas Raises Nebius Price Target to $399 as AI Cloud Demand Accelerates Nebius Group ($NBIS) is back in focus after BNP Paribas Exane upgraded the stock from Neutral to Outperform and raised its price target to $399 from $260. The new target represents a significant increase in the firm's valuation view and comes as investors continue to watch the rapid growth of AI cloud infrastructure. The upgrade is not happening in isolation. Nebius has been showing strong demand for its AI computing services, including higher pricing for GPU capacity. The company recently announced price increases of roughly 17%ā€“21% for selected NVIDIA GPU instances, with the changes scheduled to take effect October 1. The move points to continued demand for AI compute capacity and gives Nebius more pricing power. Strong AI-cloud growth Nebius reported $582.3 million in Q2 2026 revenue, up 454% year over year, while adjusted EBITDA reached $236 million. The company also closed four major AI cloud contracts during the quarter, each worth more than $1 billion. The company is also aggressively expanding its AI infrastructure. Nebius has raised its contracted power target to around 5 gigawatts by year-end, supporting its plan to significantly increase computing capacity as demand from AI companies continues to grow. Another major piece of the story is its relationship with NVIDIA. In March, NVIDIA announced a strategic partnership with Nebius and committed $2 billion of investment, with the companies targeting deployment of more than 5 GW of NVIDIA systems by the end of 2030. Why investors are watching NBIS The bigger story behind the BNP upgrade is the growing economics of AI infrastructure. Demand for GPUs, data-center capacity and AI cloud services remains strong, allowing specialized cloud providers such as Nebius to increase prices while continuing to sign large contracts. At the same time, the business requires enormous capital spending. Nebius expects $20 billionā€“$25 billion of capital expenditure in 2026, mainly for GPUs, hardware and data-center expansion. That means the company has a major growth opportunity, but investors also need to watch how efficiently that spending translates into revenue and cash flow. Bottom Line The $399 BNP Paribas Exane target puts fresh attention on NBIS and reflects the firm's more bullish view of Nebius' AI-cloud growth. The key factors to watch from here are GPU pricing, new billion-dollar contracts, data-center capacity expansion, margins and the company's heavy capital spending. #NBIS #Nebius #AICloud #ArtificialIntelligence #NVIDIA #NVDA #AIInfrastructure #CloudComputing #TechStocks