Key Points
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Shares of Nebius have soared in 2026, and further upside cannot be ruled out given its robust backlog.
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Nebius trades at an expensive valuation right now, but it can justify it given its solid growth potential.
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A stock split can boost demand for Nebius stock, but it remains worth buying regardless.
Shares of neocloud specialist Nebius Group (NASDAQ: NBIS) have jumped by 183% in 2026 as of this writing, and the good news for investors is that the stock recently received a major shot in the arm from BNP Paribas.
The investment bank raised its price target on Nebius stock to $399 from $260 earlier, implying 68% upside. Analyst Stefan Slowinski believes that Nebius’ impressive backlog and improved pricing of its cloud computing infrastructure will be tailwinds for the stock.
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Nebius stock has lost momentum lately, and a stock split could change that
Though Nebius has surged impressively in 2026, the stock is down 17% from the 52‑week high it reached on June 22. Though a forward stock split is just a cosmetic move that doesn’t alter a company’s fundamentals or prospects, it could spur demand for Nebius stock.
That’s because a forward stock split will lower the price per share by increasing the number of shares outstanding. A lower stock price could attract more retail investors, propping up Nebius stock. However, investors with sufficient cash to buy Nebius, or whose brokerages allow fractional share purchases, can consider investing in this neocloud infrastructure provider regardless of a stock split.
The company’s solid growth prospects make it a no‑brainer buy
Nebius rents out dedicated artificial intelligence (AI) data centers to customers. It operates in a market where demand has been exceeding supply, which explains why the company has been able to command higher prices for its AI infrastructure.
The company recently auctioned off its data center capacity for the first time, receiving 15% higher prices for mid‑term contracts than the rates it was charging earlier. What’s more, Nebius is going to increase the rental of Nvidia‘s graphics cards by 17% to 21% from October, as reported by Reuters. It will also increase the prices of server processors and memory chips by 25% and 41%, respectively.
So, Nebius is taking advantage of the incredible demand for AI infrastructure by setting higher prices. Also, the company reported a sizable backlog of $40 billion at the end of Q2, which should ensure that the impressive top‑line growth it has been clocking continues.
Data by YCharts
Moreover, the favorable pricing environment is helping Nebius cut losses. Nebius’ net loss decreased by 64% in the second quarter to $33.2 million, and the company is confident of achieving higher margins over the long run as it adds more data center capacity and capitalizes on better pricing.
Of course, Nebius is trading at an expensive 46 times sales right now following its stellar run, which may deter value‑oriented investors from buying this stock. However, investors with a greater risk appetite may consider buying Nebius given its impressive growth potential.
Data by YCharts
Nebius has a market cap of $64 billion. That number could grow significantly over the next three years, given that its revenue is expected to exceed $23 billion in 2028. In simple words, Nebius could become a multibagger even if it trades at a significant discount in the future, making this AI stock a solid pick for growth‑oriented investors.
While a stock split could provide a short‑term boost, Nebius’s strong backlog, pricing power, and AI‑driven growth trajectory support its long‑term investment case. Investors should weigh the high valuation and growth prospects before buying.
Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.