Nebius Challenges Hyperscalers With Dedicated AI Computing Services, Transparent Pricing: Analyst

D.A. Davidson & Co. analyst Alexander Platt initiated coverage on Nebius Group N.V. NBIS with a Buy rating and a price forecast of $50.

The analyst highlights that the company is positioning itself as a key alternative to hyperscalers like AWS, Azure, and GCP, which are leveraging rigid pricing and supply constraints to secure high margins.

While AWS and Azure offer dedicated AI instances, they are burdened by unnecessary software layers and additional costs.

This has led AI startups and enterprises to seek alternatives like Nebius, which is designed specifically for AI workloads.

Nebius capitalizes on this by offering dedicated AI computing services with transparent pricing and scalable infrastructure tailored for AI workloads.

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Unlike hyperscalers, Nebius has a structural advantage for handling next-generation AI needs. It has a vertically integrated model and owns data centers.

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The analyst writes that while AI compute demand will stabilize, Nebius is uniquely positioned to handle long-term AI workloads.

As AI adoption grows, companies will need scalable, cost-effective compute, which hyperscalers often fail to provide without high premiums.

Unlike general cloud providers, Nebius is purpose-built for continuous AI infrastructure growth, Platt writes.

This apart, Nebius combines compute power with networking, workload scheduling, and AI-optimized services, making it a more scalable and efficient option for AI-focused businesses.

Price Action: Nebius shares are trading lower by 5.8% to $34.14 at last check Tuesday.

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