Nebius Group (NASDAQ:NBIS) shares gained 3.6% in premarket trading on Monday after Truist analysts reiterated their Buy rating on the company and Nebius announced a $10 million programme supporting artificial intelligence developers in Europe.
The increase followed a period of selling pressure across AI infrastructure stocks, with Nebius shares declining approximately 21% over the previous week.
The stock had closed at $165.47 in the preceding session, following a decline of nearly 12% on October 16 amid broader weakness in companies providing cloud computing infrastructure for artificial intelligence.
Truist Reaffirms Buy Rating and $355 Price Target
Truist analysts reiterated their Buy ratings on Nebius and CoreWeave in a research note issued on Sunday evening.
The analysts assigned Nebius a price target of $355, representing more than twice the share price indicated in Monday’s premarket trading.
The research note addressed recent concerns surrounding the neocloud sector following the unsuccessful initial public offering of Firmus, which had contributed to selling pressure across AI infrastructure companies.
Truist argued that the outcome of the Firmus offering did not necessarily indicate broader structural difficulties for AI cloud providers with established contract backlogs.
The analysts also pointed to Nebius’s expected enterprise value-to-sales (EV/Sales) multiple of 4.5 times for 2028.
According to Truist, the valuation is supported by forecasts of above-average revenue growth during that period.
The assessment reflects the brokerage’s expectations for Nebius rather than confirmed future financial performance.
Nebius Announces $10 Million Programme for European AI Developers
Nebius also announced a $10 million initiative designed to support developers working on artificial intelligence projects across Europe.
The programme, developed in partnership with NVIDIA and venture capital firm Accel, will provide access to computing resources, capital and community support.
The initiative is intended to assist AI developers by making infrastructure and other resources available for the development of their projects.
The announcement adds to Nebius’s activities in the AI computing sector, where demand for processing capacity has been a central factor in infrastructure investment plans.
The company did not provide additional financial projections associated with the programme in the information released.
AI Infrastructure Stocks Recover Following Sector Selloff
Nebius’s premarket gains coincided with a broader recovery in US equity index futures and technology-related shares.
The Nasdaq was reported 1.1% higher, while the S&P 500 advanced 0.6%, reflecting an improvement in market sentiment following the previous week’s declines.
AI infrastructure companies had experienced substantial selling pressure as investors reassessed valuations, capital expenditure requirements and financing conditions.
Nebius was among the companies affected, recording a weekly share price decline of approximately 21%.
The stock’s October 16 fall of nearly 12% formed part of a wider retreat in companies associated with AI infrastructure development.
Monday’s premarket advance represented a partial recovery from those declines.
Executive Share Purchases Attract Investor Attention
Recent executive-level share purchases at prices around $169.99 per share were also cited among developments attracting investor attention.
Transactions involving company executives can provide information about insider ownership and trading activity, although they do not establish the future direction of a company’s share price.
The purchases occurred during a period of increased volatility for Nebius and other AI-related companies.
Investors are also assessing the potential effects of higher financing costs and the substantial investment requirements associated with expanding data centre capacity.
Nebius Remains Below 52-Week High
Despite Monday’s premarket increase, Nebius shares remained below their reported 52-week high of $299.86.
The stock’s recent performance reflects changing investor expectations for companies involved in providing computing infrastructure for AI applications.
Truist’s $355 price target indicates that the brokerage expects a higher valuation, based partly on projected revenue growth and the company’s position in the AI cloud market.
However, the outlook remains dependent on Nebius’s ability to deliver its growth plans, manage investment requirements and meet future financial expectations.
The company’s newly announced European developer programme provides an additional initiative for investors to assess alongside its existing infrastructure operations and expansion strategy.