GMI Cloud Raises $668 Million to Expand Global AI Infrastructure

The central fair value estimate for Nebius Group has been lowered to US$283.58 from US$312.67, reflecting more cautious Street research that weighs enthusiasm for the company's AI-focused cloud infrastructure against concerns over valuation, capital needs and execution risk. The revision came alongside adjustments to the underlying model assumptions: the revenue growth assumption moved from 181.88% to 179.89%, the net profit margin input from 7.91% to 6.96%, the future P/E multiple from 57.25x to 59.17x, and the discount rate from 8.63% to 8.73%. On the bullish side, William Blair described Nebius as not just another neocloud, citing infrastructure scale, software capabilities and major customer relationships, while Buy and Outperform ratings from Goldman Sachs, Citi, BofA, Baird, Truist, Northland, Freedom Capital and BNP Paribas carried price targets in some cases above US$300, and above US$400 and US$390 for Northland and BNP Paribas respectively. On the bearish side, Rothschild & Co Redburn initiated coverage with a Sell rating and a US$84 price target, questioning whether equity markets fully reflect leverage and off-balance-sheet commitments tied to AI infrastructure, while Piper Sandler and BTG Pactual sat at Neutral with price targets in the low US$200s, flagging a more balanced risk and reward profile including earlier concerns around the Vineland data center and comparisons with peer CoreWeave.