20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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2) Nebius Group N.V. (NASDAQ:NBIS)

Number of Hedge Fund Holders: N/A

Average Upside Potential: 108.0%

Nebius Group N.V. (NASDAQ:NBIS) is a technology company that builds full-stack infrastructure to service the global AI industry. BWS Financial analyst, Hamed Khorsand, provided a “Buy” rating because of several factors, including the strategic positioning of the company in the AI sector. The firm gave a price target of $51. Nebius Group N.V. (NASDAQ:NBIS)’s unique ownership of AI-related architecture and hardware, coupled with assets such as Nebius AI, Avride robotaxi service,  and Toloka AI places it well to seek support from burgeoning demand for AI solutions.

Furthermore, Hamed Khorsand highlighted the infrastructure investment efforts by Nebius Group N.V. (NASDAQ:NBIS) involving robust capex targeted at expanding operational capacity in the US and Europe. The analyst believes that the expected growth in ARR can result in positive adjusted EBITDA by 2025, fueling the valuation of the company’s stock. In another significant development, Nebius Group N.V. (NASDAQ:NBIS) announced that it entered into definitive agreements for a US$700 million private placement financing from a select group of institutional and accredited investors, which include participation from Accel, NVIDIA, and certain accounts managed by Orbis Investments.

The financing strengthens Nebius Group N.V. (NASDAQ:NBIS)’s previous plans to further build out its full-stack AI infrastructure – which includes large-scale GPU clusters, cloud platforms, and tools and services for developers – for AI pioneers. Nvidia’s investment in the company is expected to propel Nebius Group N.V. (NASDAQ:NBIS) growth. The company expects to deliver an ARR by year-end 2025 of between US$750 million – US$1.0 billion.

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