TLDRs;
- Nebius shares plunged 15% Friday, but still finished the week 5.7% higher after earlier gains driven by Nvidia ownership disclosures.
- Investors realized Nvidia’s SEC filing reflected previously acquired warrants rather than fresh purchases, reducing enthusiasm around the announcement.
- Despite the selloff, Nebius continues expanding AI infrastructure with new financing and billions of dollars in contracted customer revenue.
- Markets now await earnings from major AI customers and Federal Reserve decisions that could influence technology sector valuations.
Nebius Group (NASDAQ: NBIS) experienced a sharp reversal on Friday, with shares dropping 15% to close at $187.77, erasing nearly all of the rally sparked earlier in the week. Although the stock suffered one of its steepest daily declines in recent months, it still ended the week with a 5.7% gain, highlighting the volatility surrounding AI infrastructure companies.
The selloff followed a closer examination of an SEC filing involving Nvidia (NASDAQ: NVDA). While the disclosure initially fueled investor optimism by revealing Nvidia’s 9.3% beneficial ownership in Nebius, market participants later recognized that the filing did not represent a new investment.
Instead, the majority of Nvidia’s disclosed position consisted of pre-funded warrants acquired months earlier. As enthusiasm surrounding the filing faded, investors quickly locked in profits, sending Nebius sharply lower before the weekend.
Warrants Sparked Misunderstanding
The market’s initial reaction stemmed from assumptions that Nvidia had recently increased its exposure to Nebius. However, regulatory documents showed that approximately 94.6% of the disclosed position was tied to warrants purchased in March rather than fresh stock purchases.
Those warrants cannot be exercised until September and remain subject to transfer restrictions, meaning the filing largely reflected existing ownership rather than a new endorsement.
That realization significantly changed investor sentiment. Friday’s $33.20 decline erased almost all of the $34.30 advance recorded after Tuesday’s filing, demonstrating how quickly speculative momentum can reverse once additional details emerge.
The decline was not limited to Nebius. Other AI infrastructure companies also came under pressure as investors reassessed valuations across the sector. CoreWeave (NASDAQ: CRWV) fell 11.4% during Friday’s session, while IREN (NASDAQ: IREN) declined 8.7%, suggesting broader caution rather than company-specific weakness alone.
Trading activity also reflected heightened investor interest. Nearly 24 million shares changed hands during Friday’s session, representing roughly 34% above the stock’s recent average daily volume.
AI Spending Under Spotlight
Beyond the Nvidia filing, investors are increasingly focused on the cost of building AI infrastructure. Growing capital expenditure commitments from major technology companies have raised concerns about how quickly those investments will translate into profits.
Market sentiment also weakened as U.S. growth funds recorded significant outflows during the week. Investors are now awaiting earnings from Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META), both key Nebius customers, for fresh clues on future AI spending.
Expansion Plans Continue
Despite Friday’s selloff, Nebius continues expanding its AI infrastructure business. The company recently secured a $775 million senior financing facility backed by deployed GPUs and contracted customer cash flows, providing additional funding for future growth.
Nebius also reported more than $40 billion in contracted revenue, naming Microsoft and Meta among its major customers. In the first quarter, revenue climbed 684% year over year to $399 million, while adjusted EBITDA reached $129.5 million.
The company has raised its 2026 capital expenditure forecast to $20 billion-$25 billion, reflecting its aggressive expansion strategy. Going forward, investors are expected to focus on execution, customer demand, and AI infrastructure deployment rather than ownership filings.
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