Nebius stock tumbled 15% on Friday, hitting $187.77 after the excitement around Nvidia's disclosed ownership cooled off. Despite the sharp selloff that erased most of the week's gains, Nebius closed with a solid 5.7% increase for the week, reflecting continued investor interest in AI infrastructure plays despite volatility.
Details Behind the Drop
The market initially rallied on Nvidia’s SEC filing that indicated a 9.3% stake in Nebius. This caused a surge in investor optimism, pushing the stock significantly higher earlier in the week. However, a deeper dive revealed the filing mostly represented warrants Nvidia had acquired months ago, not fresh stock purchases. About 94.6% of their position came from these pre-funded warrants, which remain exercisable only starting September and include transfer restrictions.
When investors realized that Nvidia wasn’t increasing its exposure right now, enthusiasm faltered. Friday’s steep $33.20 slide reversed almost all the $34.30 climb from Tuesday, showing how quickly sentiment around speculative momentum can shift once regulatory details surface.
This correction wasn’t isolated to Nebius. Other AI infrastructure firms like CoreWeave and IREN also saw their shares drop 11.4% and 8.7% respectively, as the sector faced broader reassessment.
Market Reaction and Sector Outlook
Trading volumes surged on Friday, with nearly 24 million shares changing hands, about 34% above Nebius' recent daily average. Investors now have their eyes on upcoming earnings reports from major AI clients and Federal Reserve decisions that might impact valuations in tech stocks.
Meanwhile, Nebius continues its aggressive push into AI infrastructure, backed by fresh financing and billions in contracted revenue. The focus on AI capital spending has investors debating how quickly big tech budgets for AI can sustain growth in companies like Nebius amid fluctuating market moods.
