Nebius Stock Plunged 31% Last Month. Is It Time to Buy?

Nebius Group stock fell 31.1% in July despite being up 125% year-to-date. While the AI cloud infrastructure provider benefits from strong demand for data center capacity and has ambitious expansion plans (growing from 1 GW to over 4 GW of projected power capacity), investors should remain cautious. The company is spending heavily on infrastructure ($2.5 billion in Q1 alone on GPUs and hardware) and faces rising operational costs. Trading at 14x forward sales, the stock could remain stagnant near current levels, with significant downside risk if customers pull back on cloud capacity commitments.