10 Best Software Infrastructure Stocks to Buy According to Analysts

2. Nebius Group (NASDAQ:NBIS)

Upside Potential: 102%

Number of Hedge Funds: N/A

Nebius Group (NASDAQ:NBIS) provides infrastructure and services to AI builders globally through its AI-centric cloud platform, Nebius AI. This platform offers full-stack infrastructure, including large-scale GPU clusters, cloud services, and developer tools. The company also operates Toloka, a data partner for generative AI development stages; TripleTen, an edtech platform for reskilling individuals for tech careers; and Avride, which develops autonomous driving technology for self-driving cars and delivery robots.

Previously known as Yandex, the company was suspended from trading in 2022 after Russia’s invasion of Ukraine. It rebranded to Nebius Group (NASDAQ:NBIS) in October 2024 after divesting its Russian assets. As of September 30, 2024, the company had an annualized run-rate revenue of $120 million, with expectations to reach $170 million to $190 million by the end of 2024.

In early December 2024, Nebius Group (NASDAQ:NBIS) raised approximately $700 million through a private placement financing from institutional and accredited investors, including Accel, NVIDIA, and Orbis Investments. The funds will be used to expand its full-stack AI infrastructure.

Citron Research recently released their bull thesis on the stock (Read the full report by Citron) and said that investor can’t afford to overlook stock’s new narrative. The report states:

“Citron believes that the current opportunity to buy Nebius stock is unique, with Wall Street analysts yet to initiate coverage on the company. As Nebius continues to ramp up its operations, including further capital raises, we expect analyst attention to increase, which will likely drive the stock price higher. Nebius is projected to generate nearly $1 billion in revenue by 2025, largely driven by its data center infrastructure. This business is growing rapidly, and the recent $700 million capital raise from Nvidia and Accel Partners provides a strong financial foundation for Nebius’ future growth.”