June 5 – Shares of Nebius (NASDAQ:NBIS) climbed about 20% Thursday after the company secured $1 billion through convertible notes to strengthen its artificial intelligence operations.
The cloud infrastructure provider said the capital will go toward advancing its AI development plans as it eyes long-term growth opportunities in the fast-expanding sector.
Nebius also appointed Marc Boroditsky as Chief Revenue Officer. He previously led Twilio’s (NYSE:TWLO) revenue organization, helping to grow its paying customer base and significantly scale revenue over five years. The company said it expects Boroditsky’s leadership to support its global expansion efforts.
Following the announcements, Arete analyst Andrew Beale began coverage of Nebius with a Buy rating and a price target of $84. That implies nearly 75% upside from current levels. Beale also said Nebius offers better value than CoreWeave (NASDAQ:CRWV), which he rated Neutral with a $130 target.
Nebius shares jumped nearly 20%, extending their 73% gain so far this year. Trading volume reached more than 28 million shares Thursday, almost triple the three-month daily average. The stock is up about 108% over the past 12 months.
This article first appeared on GuruFocus.