Shares of Nebius Group (NBIS) rose 3.6% in pre-market trading on Monday, recovering from a previous close of $165.47, after Truist reiterated its Buy rating and kept a $355 price target on the AI infrastructure company.

The rebound followed a steep end to last week. Nebius fell nearly 12% on Friday, October 16, in a broad selloff across AI infrastructure names. That session, the Nasdaq dropped 2% and the S&P 500 lost 1%. Over the prior week, the stock shed roughly 21% of its value. Markets steadied on Monday, with the Nasdaq up 1.1% and the S&P 500 up 0.6%, giving AI names a lift after a rough stretch.

Truist Reiterates Buy Rating, Sets $355 Target

In a note published Sunday evening, Truist reiterated Buy ratings on both Nebius and CoreWeave. The firm set a $355 price target on NBIS, more than double the stock's pre-market price on Monday.

According to the firm, the collapse of the Firmus IPO had rattled neocloud investors — the shorthand for GPU-focused providers such as Nebius and CoreWeave that rent out AI computing capacity, a capital-intensive niche alongside the large hyperscale clouds. Truist argued the failed offering was not a sign of weakness for AI cloud providers with contracted backlogs. It also described Nebius's projected 4.5x 2028 EV/Sales multiple — enterprise value measured against projected sales — as justified, pointing to above-average expected revenue growth through that year.

Separately, Nebius announced a $10 million program for European AI developers, built with NVIDIA and Accel. The initiative provides compute grants, capital access and community resources.

Director Arne Grimme also bought 148 units of the stock at $169.99. The purchase, made under a pre-arranged Rule 10b5-1 plan that schedules insider trades in advance, was small.

What Weighed on the Stock

Debt worries at CoreWeave spread across the AI cloud group last week, as investors questioned how GPU providers can pay for rapid expansion. The model requires heavy upfront spending on GPUs and data center capacity before that hardware generates revenue, which is why funding questions tend to move the whole group at once. A warning from Gartner, the technology research and advisory firm, that most neocloud companies may not survive on their own added to the selling pressure. The market's Fear & Greed reading, a widely followed sentiment gauge, also moved toward "Extreme Fear."

Insiders have sold 151,230 units of the stock, worth about $36.8 million, over the last 90 days. CEO Arkadiy Volozh sold 37,778 units at $234.16 on October 1, and CTO Danila Shtan sold 14,546 units at the same price.

Financial and Analyst Views

Nebius trades below its 50-day moving average of $223.57 and its 200-day average of $206.66 — levels traders often use to judge a stock's trend. Its 52-week low stands at $73.52.

The company's most recent quarter showed strong growth. Revenue hit $582.3 million, up 454% from a year earlier, topping estimates of $567.91 million. The loss of $0.12 per share also beat the expected loss of $0.67.

Analysts carry a "Moderate Buy" consensus on the stock with an average price target of $245.69. Truist's $355 target stands well above that consensus average, highlighting the wide range of valuations on the name. Of 22 analysts, 15 rate it Buy or Strong Buy, five say Hold and two say Sell.

On the institutional side, Cyndeo Wealth Partners raised its Nebius position by 1,180% in the third quarter, to about $2.45 million. Institutions own 21.9% of the company.

As of Monday's pre-open, Nebius was up 3.6% from its $165.47 close. The stock remains well below its 52-week high of $299.86.

This article originally appeared on CoinCentral.