Nebius Group, a specialist in artificial intelligence infrastructure, experienced a notable increase in its share price this week, rising by over 11% as reported by S&P Global Market Intelligence. This growth was largely attributed to a strategic investment by a prominent business figure, although it was not the sole factor.
The investment from former Amazon CEO Jeff Bezos’ private firm was a major catalyst. It was announced on Wednesday that Bezos had invested $72 million into Tokola, a unit within Nebius Group focused on training and analyzing AI models. This funding will enable Tokola to advance its development efforts amid sustained high demand for AI while maintaining operational independence. Despite this, Nebius retains a majority stake in Tokola.
An additional boost came from market sentiment, which was already positive towards Nebius. The previous day, analyst Nehal Chokshi from Northland initiated coverage on the company’s stock, recommending it as an outperform with a target price of $34 per share. Chokshi projected that Nebius is well-positioned to expand its market share and generate significant free cash flow, indicating a 20% potential upside for the stock.
With the Bezos investment and Northland’s optimistic outlook, the company’s management faces expectations to meet these heightened hopes. Nonetheless, Nebius Group remains a respected entity in a highly competitive segment of the tech market, suggesting favorable prospects at present.
