Nebius Group stock price has collapsed and moved into a bear market after falling by over 44% from its highest level this year. NBIS has plunged to a low of $25 after peaking at $50.8 earlier this year. So, is it safe to buy the Nebius stock price dip or sell the rip?
Nebius is a fast-growing AI infrastructure company
Nebius Group is a relatively new company that is aiming to be a big player in the artificial intelligence industry.
It operates its business across various subsidiaries. The main business is Nebius, where it builds and operates large data centers with the most advanced chips from companies like NVIDIA and AMD.
Nebius Group also runs Toloka, a data partner for all stages of AI development from training to evaluation. The goal is to partner with companies that are building large-scale data models.
Further, the company runs TripleTen, an education company that focuses on reskilling and upskilling individuals for successful careers in the technology industry. Additionally, the company is aiming to be a major player in the robotics, ride-hailing, and e-commerce businesses.
Established by the Yandex founder, the company aims to be a major player in the AI industry that many analysts believe has room to grow.
However, this is also an industry facing threats, especially from DeepSeek, which has managed to build an equally good AI model using less advanced semiconductors.
The other risk is that there are signs that the AI bubble is bursting as the commercialization element remains weak. While the valuation of companies like xAI, Anthropic, and OpenAI has surged, there are concerns about their revenue growth.
Also, it is hard to see the incremental revenue that firms like Microsoft and Google are getting from their AI investments.
Growth is continuing
The most recent results showed that Nebius Group’s business was surging, albeit from a low base. Its quarterly revenue jumped by 466% to $37.9 million. The annual revenue soared by 462% to $117 million.
This growth came at a cost as the company boosted its capital infrastructure. The net loss jumped to $136 million in the last quarter and $396 million in 2024. This loss-making trend is understandable since Nebius Group was started a few years ago, and is still in its growth phase.
A strong balance sheet is the most important thing that a company in this stage needs. Nebius Group’s cash and equivalents rose from $116 million in December 2023 to over $2.4 billion in December last year. Its total current assets were about $2.53 billion.
The challenge, however, is that the company is still burning so much cash, meaning that it may be forced to raise cash this year or in 2026.
On the positive side, analysts are optimistic that Nebius Group’s revenue will get supercharged soon. It will move from $117 million in 2024 to $553 million this year and $943 million next year.
Therefore, for a fast-growing company like Nebius Group, investors will likely need to weigh the option between growth and potential dilution.
Nebius Group stock price analysis
The daily chart shows that the Nebius Group share price has been under pressure in the past few months. It dropped from a high of $87.32 in November to the current $28.40.
Most recently, the Nebius share price has dropped from a high of $50.50, which was the 50% Fibonacci Retracement level. The stock has dropped below the ascending channel that connects the lowest swings this year.
Nebius Group stock price has formed a mini death cross where the 50-day and 25-day moving averages have crossed each other. Therefore, the NBIS share price will likely continue falling as sellers target the key support at $13.45, down by 53% from the current level.
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