Nebius Group (NASDAQ: NBIS) fell 21.1% this week, according to data provided by S&P Global Market Intelligence. However, this decline does not concern existing shareholders who have enjoyed the 231% gain in Nebius stock over the past year.
Investors who feel they missed the recent rally in Nebius shares may view the dip as a potential entry point, as the company continues to expand its data‑center investments and already has customers queued to utilize its compute capacity.
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Capital expenditures by the four largest hyperscalers have already reached $300 billion through June of this year, representing roughly 75 % of their total 2025 spend, according to research from The Motley Fool. A portion of this investment is flowing to Nebius, which reported more than $4.5 billion in net cash from operating activities for the first half of 2026, up from just $350 million a year earlier.
To satisfy growing demand, Nebius announced a $5 billion capital raise through convertible notes this week. The stock fell on the news, as the added debt could lead to shareholder dilution if the notes convert to common stock.
In its second‑quarter shareholder letter, Nebius highlighted that rising demand is boosting the value of its compute capacity, with contract price per megawatt of capacity surging this year.
Return on invested capital is improving, suggesting that share‑price dips could present buying opportunities for those who believe AI infrastructure investment will persist for several years. However, the stock’s already high valuation remains a key risk.
Is Now a Good Time to Invest in Nebius Group?
Prospective investors should weigh the following points before acquiring Nebius shares.
The Motley Fool Stock Advisor analyst team has recently highlighted what they consider the ten most promising stocks for investors at present. Notably, Nebius Group is not among the selected companies, even though those stocks are projected to deliver substantial returns.
For illustration, when Netflix made this list on December 17, 2004, a $1,000 investment at the time would have grown to $432,189.* Or when Nvidia made this list on April 15, 2005, an investment of $1,000 would have yielded $1,330,956.*.
