Key TakeawaysDA Davidson reduced NBIS price target by 30% from $250 to $175 while keeping Neutral stanceConstruction setbacks at the company’s New Jersey Vineland site may push completion past 2026Gil Luria from DA Davidson cautions that infrastructure delays threaten Nebius’ neocloud leadershipSecond quarter results scheduled for August 12; analysts project $569.89M revenue, up 442% annuallyShares have surged 120% in 2026 but now trade at $191.53, exceeding the revised price targetDespite posting impressive gains of 120% in 2026 and 173% over the trailing twelve months, Nebius Group now confronts fresh skepticism from Wall Street analysts questioning its infrastructure rollout timeline.Nebius Group N.V., NBISIn a note released Monday, DA Davidson’s Gil Luria slashed his NBIS price objective from $250 down to $175, just days before the company reports second-quarter 2026 financial results on August 12. With shares currently changing hands at $191.53, the stock now sits above the analyst’s revised valuation.While maintaining his Neutral outlook, Luria raised red flags regarding construction momentum at Nebius‘ Vineland data center campus in New Jersey.The investment firm conducted an on-site inspection and participated in a municipal council meeting to gather direct intelligence. Following that assessment, Luria concluded the facility will likely miss its target of bringing 328 MW of active capacity online before year-end.This development carries significant weight given Nebius’ ambitious plan to expand connected power infrastructure from approximately 170 MW at the close of 2025 to a range of 800-1,000 MW by December 2026.Simultaneously, management aims to catapult its revenue run rate from $1.9 billion recorded in March 2026 to between $7 billion and $9 billion by the fourth quarter. Such aggressive expansion demands flawless execution across multiple fronts.Infrastructure Bottleneck Threatens Forward ProjectionsAccording to Luria’s analysis, the Vineland construction hurdles could eliminate potential upside to management’s full-year 2026 outlook. More concerning, he suggests these delays might undermine the investment thesis surrounding Nebius entirely.“We fear that the narrative on Nebius could change and the ability to convert contracted power to connected power and then into active power (revenue) may be put into question,” Luria stated in his research note.The company currently commands a 21% valuation premium over its backlog compared to competitor CoreWeave (CRWV), along with a 172% premium relative to Oracle’s artificial intelligence cloud offerings. Maintaining these market premiums requires consistent delivery on operational milestones.Despite his concerns, Luria recognized Nebius’ competitive advantages, including its seasoned leadership team, aggressive expansion of contracted gigawatt capacity, and superior balance sheet compared to industry peers. The analyst also highlighted the company’s ownership position in Clickhouse as a valuable complementary asset.Second Quarter Earnings PreviewConsensus estimates from Wall Street analysts anticipate an adjusted loss of $0.72 per share for the second quarter of 2026, expanding from the $0.38 loss reported in the year-ago period.On the top line, analysts are modeling revenue of $569.89 million, marking a staggering 442% increase compared to the prior year. Surging demand for AI-powered cloud computing infrastructure continues fueling these exceptional growth expectations.Options market pricing suggests traders are positioning for roughly a 13% price swing following the August 12 earnings announcement.Other Wall Street firms maintain varied perspectives on NBIS shares. Piper Sandler holds a Neutral rating with a $224 price objective, while Baird carries an Outperform recommendation alongside a $250 target, emphasizing the company’s competitive positioning in AI inference workloads. According to InvestingPro analysis, current valuation metrics indicate shares trade modestly above Fair Value estimates.The post Nebius (NBIS) Faces Price Target Slash as Infrastructure Concerns Mount appeared first on Blockonomi.