Shares of Nebius Group slid 11% in December, according to S&P Global Market Intelligence, despite no new company-specific announcements. The drop followed Oracle’s first-quarter earnings miss, where revenue came in below estimates and capital expenditures surged to $12 billion versus analysts’ $8.25 billion forecast. Investors interpreted Oracle’s lackluster guidance as a signal that the neocloud subsector – encompassing Nebius and peers such as CoreWeave – may be less insulated from an AI-infrastructure slowdown than previously thought.

Nebius’s GPU-rental model has driven rapid top-line growth but remains deeply unprofitable and highly sensitive to hardware depreciation and interest-bearing debt used for capacity build-out. The stock fell 19% in the week following Oracle’s earnings release, reflecting concerns that elevated borrowing costs and accelerating depreciation of high-performance accelerators could pressure margins and cash flows in the near term.

After the December sell-off, Nebius rebounded following Micron’s quarterly report, which highlighted accelerating demand for high-bandwidth memory chips used in AI workloads. An upgrade of CoreWeave by a leading research firm further bolstered confidence in neocloud providers, underpinning a 15% gain in Nebius shares through January 7. These developments suggest that the AI infrastructure narrative remains intact for now, despite late-year turbulence.

Early 2026 momentum has been supported by upbeat commentary from Nvidia’s CEO at CES and fresh price targets: Northland named Nebius a top pick with a target implying a doubling from current levels, equating to roughly $211 per share. Looking ahead, Nebius plans to deploy its Vera Rubin platform in the second half of 2026. Sustained execution on capacity expansion, utilization rates and debt management will be critical for the stock to maintain its rebound and justify its elevated AI-infrastructure valuation.