**Nebius Group Stock Skyrockets on News of Analyst’s Bullish Forecast**

Shares of Nebius Group (NBIS 1.77%) saw a significant uptick today, propelled by an optimistic evaluation from a reputable independent equity research firm. As of 11:05 a.m. ET, the stock was trading 19.5% higher, driven by promising projections.

Andrew Beale, an analyst from London-based Arete Research, initiated coverage of the Netherlands-based AI cloud services provider with a "buy" rating and an ambitious price target of $84 per share. This new target suggests a potential 113% increase from the previous day’s closing price, a forecast that has understandably excited investors.

This bullish outlook comes on the heels of Nebius reporting an impressive 385% revenue growth in the first quarter, a figure that stems from a low base but indicates accelerating expansion. The company's annualized revenue run rate has grown nearly 700%, and management anticipates tripling this figure by the end of the fourth quarter.

Nebius' strong cash position, standing at $1.44 billion as of March 31, will support continued investment in cloud infrastructure, essential for scaling the business to meet burgeoning demand for its AI cloud services. Moreover, the company announced a significant $1 billion capital raise on June 2 through the sale of convertible notes, further bolstering its financial footing.

A crucial partnership with AI industry leader Nvidia plays a significant role in Nebius' growth strategy. Together, they offer the Blackwell Ultra AI factory platform, designed to empower businesses in developing advanced AI capabilities.

Investors should be mindful, however, of the inherent risks. Nebius is heavily focused on capital investment and aims to achieve positive adjusted EBITDA later this year, a key indicator of its financial health and potential for sustained growth. Monitoring this metric will be essential for investors evaluating the long-term prospects of the stock.

Howard Smith owns shares in both Nebius Group and Nvidia. The Motley Fool also recommends and holds positions in these companies.