Shares of Nebius (NBIS) soared 8.05% in after-hours trading on Wednesday, building on its recent momentum in the artificial intelligence (AI) infrastructure sector. The surge comes on the heels of a positive analyst rating and growing investor confidence in the company's expansion plans and partnerships.

Citizens initiated coverage on Nebius Group with a "Market Outperform" rating, signaling strong expectations for the company's future performance. This vote of confidence from analysts comes as Nebius continues to solidify its status as one of Wall Street's favorite AI data center cloud capacity providers.

Adding to the optimism, Nebius recently announced a significant agreement with Meta to deliver AI infrastructure, valued at approximately $3 billion over five years. This deal underscores the company's growing importance in the AI ecosystem and its ability to secure high-value contracts with major tech players.

Furthermore, Nebius has set ambitious growth targets, projecting to have over 2.5GW of contracted power by the end of 2026, with 800MW-1GW of connected power. The company believes it can achieve an annualized run-rate revenue of $7 billion to $9 billion by the end of 2026, showcasing its confidence in the rapidly expanding AI infrastructure market.

As demand for AI computing power continues to surge, Nebius's strategic positioning and recent developments have caught the attention of investors, potentially driving further stock appreciation in the coming sessions. The after-hours jump follows a strong performance during regular trading hours, indicating sustained investor interest in the company's growth prospects.