Nebius Group shares rose 21.1% from the end of last Friday's market session through Thursday's close as investors digested a report that the company was in talks to buy AI21 Labs and a fresh bullish call from Cantor Fitzgerald.
The Information reported Thursday morning that Nebius was discussing a purchase of AI21 Labs, an Israeli start-up that specializes in AI systems for enterprises. Later on Thursday, Cantor Fitzgerald began coverage of Nebius with an overweight rating and a $129 price target, giving the stock another push after it had already climbed 7.9% the previous week.
The move added to a run that has made Nebius one of the market's more closely watched artificial intelligence names. Nebius develops infrastructure for artificial intelligence computing, and the company does not often make acquisitions, which made the talk of a deal stand out even more to traders following the stock.
That combination — takeover speculation and a new Wall Street endorsement — helped keep buyers engaged even as the valuation drew attention. Nebius stock was described as trading at 896 times operating cash flow, a level that leaves little room for disappointment if growth cools or the next move fails to impress.
For now, the market appears to be betting that Nebius can keep widening its role in the AI build-out while avoiding the kind of misstep that can quickly sour a fast rally. The next test is whether the company follows the chatter around AI21 Labs with a deal, or whether this week's surge becomes another burst of enthusiasm that outpaces the business behind it.
