New York, Feb 28, 2026, 14:41 EST — The market has wrapped up for the day.
Nebius Group N.V. shares slumped 13.05% on Friday, ending the session at $91.19 after sinking as low as $88.40 earlier in the day. Volume spiked, hitting around 22.8 million shares—almost triple the previous session’s 8.3 million.
Timing is key here. Investors face a puzzle: just how much is rapid AI cloud infrastructure growth really worth, especially with chip, energy, and data center costs climbing? For the smaller “neocloud” players—those focused on GPU-packed capacity for AI—the capital spending question is back in the spotlight.
The shakeup picked up speed after CoreWeave, a bigger rival, announced higher spending plans—stirring up fresh doubts about margins and funding throughout the sector. “Markets understand CoreWeave’s plan to accelerate spending,” AJ Bell investment director Russ Mould said. Still, he added, investors are scrutinizing “the long-term economics” and the financing behind these projects. Reuters
CoreWeave is ramping up, with capital expenditures expected to jump to between $30 billion and $35 billion in 2026—more than double the $14.9 billion targeted for 2025—as it aims to boost Nvidia chip supply and open more data centers. CEO Michael Intrator put it simply: the company wants to “build faster.” CFO Nitin Agrawal linked the spending directly to customer contracts already signed. D.A. Davidson’s Alexander Platt noted the market’s rough reaction, saying it’s “being punished for either having too little capex or too much capex.” Reuters
Nebius is ramping up spending fast. Capital expenditures for the December quarter hit roughly $2.1 billion—last year, same period, it was just $416 million. Looking ahead, the company projects it’ll close out 2026 with annualised revenue between $7 billion and $9 billion. CEO Arkady Volozh noted that demand keeps running ahead of what the company can supply, saying Nebius is locking in deals for future capacity “well in advance.” Reuters
It’s a jittery stock: surging demand pairs with hefty expenses. Sure, investors might chase the growth narrative, but the cost numbers can give them pause.
Timing’s another headache. If these companies miss on capacity, power, or chip delivery, contracts and margins start to unravel.
The upside? Straightforward enough. Should demand remain strong and customers continue shelling out for locked-in GPU access, this sector can handle big outlays—and still have room to expand.
There’s a hazard here—funding costs could climb, or capital markets could tighten just when it hurts. If that plays out, pricier debt or tapping equities shifts from tail risk to central part of the deal.
U.S. markets are back in action Monday, bringing the focus to the next key event for Nebius. CEO Volozh and Chief Revenue Officer Marc Boroditsky are set for a fireside chat on March 4 during Morgan Stanley’s Technology, Media and Telecom conference—an opportunity for investors to press management on demand trends, capacity, and how tightly they’re controlling spending.
