Why Is Nebius Group Stock Falling Monday?

Nebius Group N.V. (NASDAQ:NBIS) stock is trading lower on Monday, extending last week’s sharp selloff amid growing concerns about artificial intelligence valuations and infrastructure spending.

The stock has fallen 8.43% over the past five trading sessions. Meanwhile, the Nasdaq is down 0.40%, while the S&P 500 has gained 0.06%.

The decline began last week following reports that OpenAI’s annualized revenue was more than $20 billion below earlier expectations. The company also faces intensifying competition from Anthropic and developers of open-weight AI models.

AI Bubble Concerns Mount

Billionaire investor Ray Dalio has warned that rising interest rates could trigger a reversal in the AI-driven market rally. Meanwhile, Michael Burry has suggested that the AI bubble is approaching its final stage before bursting.

Investors are also questioning the economics of AI infrastructure investments, particularly the useful lives of expensive graphics processing units (GPUs).

Burry has argued that GPUs lose economic value within two to three years, compared with the five- to six-year useful lives some companies use for accounting purposes.

These concerns have put companies such as Nebius under scrutiny as they spend heavily to expand AI computing capacity.

Nebius raised more than $2 billion through a stock offering in the second quarter and retains the ability to issue additional shares, raising potential dilution concerns.

The company also reported $259 million in depreciation expenses against $582 million in revenue, highlighting the substantial costs associated with building and operating AI infrastructure.

Technical Analysis

Nebius shares are facing renewed selling pressure as investors reassess valuations and growth expectations across AI infrastructure companies.

Nebius remains in a longer-term uptrend, trading 22.8% above its 200-day simple moving average (SMA) of $172.06.

However, the near-term outlook has weakened. Shares are trading 7.9% below the 20-day SMA of $229.33 and 6% below the 50-day SMA of $224.84.

The moving average convergence divergence (MACD) indicator remains below its signal line, suggesting weakening bullish momentum.

Still, the 20-day SMA remains above the 50-day SMA, while both are above the 200-day SMA. This alignment indicates that the longer-term uptrend remains intact.

The stock faces resistance near $230, while $204 represents the next key support level.

NBIS Price Action

Nebius shares were down 4.43% at $211.27 at the time of publication Monday, according to Benzinga Pro data.

Photo by Piotr Swat via Shutterstock