Buy this AI infrastructure stock that has doubled in the past year, says Compass Point
Compass Point is adopting a bullish stance on Nebius Group . The firm initiated the artificial intelligence infrastructure stock with a buy rating and price target of $150, implying upside of 54%. Nebius’ advantage comes from the company’s position in scaling in the scarcest part of the software stack — powered data center capacity — and its ability to turn GPU investment into usable clusters as customer demand grows, wrote analyst Michael Donovan. “The company runs a full-stack model across cloud software, purpose-built systems, and facilities, which supports predictable performance, high utilization, and production-grade reliability,” he said. NBIS 1Y mountain NBIS 1Y chart He added that Nebius’ infrastructure is built around Nvidia’s latest platforms and high-speed networking, enabling large-scale training and inference workloads. The company also incorporates security, compliance controls and capacity reservation tools, thereby reducing friction for companies planning AI deployments. Donovan wrote that upcoming catalysts for Nebius come from the company’s hyperscaler partnerships. “Hyperscaler agreements with Microsoft (MSFT) and Meta (META) anchor demand visibility, while rapid revenue growth and expanding ARR frame the near-term ramp,” he said. “We base our constructive view on execution and expect Nebius to convert contracted power and funded capex into online clusters on schedule, while sustaining high utilization as the footprint scales.” The analyst also pointed to Nebius’ software as another driver and applauded the company’s AI Cloud offering —designed for large-scale training and workloads — and its Token Factory, which targets production inference and post-training use cases. Shares of Nebius have surged 103% over the past 12 months and 17% this year.
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