Artificial intelligence infrastructure company Nebius is racing ahead of its peers, according to Citi Research. The firm sees significant upside ahead for the hot stock. Shares of Dutch company Nebius are up more than 55% this year, and surged 15% on Monday alone after Meta Platforms signed a long-term agreement to spend up to $27 billion on the company’s AI infrastructure. As part of the deal, Nebius over the next five years will provide $12 billion of dedicated capacity starting early next year, and Meta also pledged to buying as much as $15 billion of additional available compute capacity from Nebius. Citi analyst Tyler Radke is a big believer in Nebius’ potential to gain even further market share in the quickly growing AI compute market. On Monday morning, Radke initiated Nebius with a buy rating and $169 price target, which suggests the stock could jump an additional 49.6% from its latest closing price of $112.95. “Nebius positions itself as an emerging AI hyperscaler, not just a GPUaaS provider, with a full‑stack architecture that spans custom datacenter design, in‑house hardware, orchestration, and an expanding inference and agentic services layer,” he wrote in a Monday note to clients. NBIS 1Y mountain Nebius Group stock performance over the past year. Radke said his bullish rating is supported by his outlook on the company’s strong balance sheet, margin improvement, early access to next‑generation Nvidia chips, and capital‑efficient scaling that is pushing its growth ahead of peers. Additionally, he said that Nebius’ “materially underrecognized” 25% stake in ClickHouse, an open-source database management system, should support its overall growth. Citi’s analysis models double‑digit margins for Nebius by fiscal year 2029 and a five‑year revenue compound annual growth rate of 125%. “Citi forecasts tracked AI workloads rising from ~18GW in 2025 to ~110GW by 2030 (~44% CAGR), and we expect NBIS to outgrow the market by 2×, scaling to ~5GW of active power by 2030 (~93% CAGR), implying rising share in the global AI compute landscape,” Radke’s note reads. Analysts polled by LSEG forecast 8% potential upside for Nebius, making Radke’s outlook quite bullish by comparison. Shares of Nebius jumped in 2024 and 2025 on investor enthusiasm about its deals with hyperscalers. The company in September secured a multi-billion deal to deliver AI infrastructure to Microsoft .