According to reports by Benzinga, Nebius Group N.V. (NASDAQ:NBIS) stock traded lower on Monday, extending a sharp selloff from the previous week. The downturn aligns with growing market-wide concerns surrounding artificial intelligence valuations, heavy infrastructure spending, and the broader economics of AI hardware.
At the time of publication on Monday, Nebius shares were down 4.43% at $211.27. The stock has experienced an 8.43% decline over the past five trading sessions, underperforming broader market indexes as the Nasdaq fell 0.40% and the S&P 500 gained 0.06% over a similar timeframe.
Broader AI Sector Pressures
The recent market cooling began last week following reports that OpenAI’s annualized revenue fell more than $20 billion short of earlier projections. OpenAI is also navigating mounting competition from Anthropic and developers producing open-weight AI models.
High-profile market figures have recently sounded alarms regarding the sector. Billionaire investor Ray Dalio warned that rising interest rates could catalyze a reversal in the AI-fueled market rally. Meanwhile, investor Michael Burry suggested that the current AI bubble is approaching its final stage before bursting, drawing particular attention to the lifespan of expensive graphics processing units (GPUs).
Burry has argued that GPUs typically lose their economic value within two to three years, contrasting with the five- to six-year useful lives utilized in corporate accounting models by some firms.
Nebius Financials and Dilution Concerns
These sector-wide questions have placed intensive scrutiny on companies like Nebius, which are spending heavily to expand their AI computing capabilities. Financial disclosures show the company reported $259 million in depreciation expenses against $582 million in revenue, underscoring the substantial costs tied to building and operating AI infrastructure.
Additionally, Nebius raised over $2亿元 ($2 billion) via a stock offering during the second quarter and retains the flexibility to issue further shares, creating potential dilution concerns for current investors.
Technical Outlook
Despite the near-term downward pressure, technical indicators analyzed by Benzinga show that Nebius maintains a longer-term uptrend. The stock is trading 22.8% above its 200-day simple moving average (SMA) of $172.06.
However, the immediate outlook has softened. Shares are currently trading 7.9% below their 20-day SMA of $229.33 and 6% below their 50-day SMA of $224.84. Furthermore, the moving average convergence divergence (MACD) indicator sits below its signal line, reflecting weakening bullish momentum.
The alignment of the 20-day SMA remaining above the 50-day SMA—and both resting above the 200-day SMA—indicates that the broader uptrend remains intact. On the charts, the stock faces immediate resistance near $230, with $204 serving as the next crucial support level.