Nebius Stock Declines Amid Growing AI Bubble Concerns
Nebius Group shares fell 7.8% as market skepticism about AI infrastructure valuations intensified. The stock had quadrupled year-to-date following multibillion-dollar cloud service deals with major tech firms, including Microsoft.
Despite revenue guidance upgrades, Nebius remains unprofitable—a characteristic now drawing scrutiny as analysts question unsustainable AI sector valuations. Financial media outlets amplified these concerns, with Forbes warning of a potential bubble burst and CNBC noting growing investor apprehension.
The selloff reflects mounting tension between Nebius' growth potential and its current fundamentals. While partnerships demonstrate demand for AI infrastructure, realization of projected revenues remains critical for justifying its valuation.
