Jim Cramer Advises Caution on Nebius Due to Potential AI Infrastructure Slowdown

Nebius Group N.V. (NASDAQ:NBIS) is one of the stocks Jim Cramer discussed, along with market shortages. A caller asked where Cramer sees the biggest risk in the company and his view on the AI infrastructure. In response, Cramer said:

Well, I think that, I think that, you see, these stocks were all overvalued. What’s going to happen is one of these Mag Seven companies is going to say, you know what? We’re going to slow down the building, and then Nebius is going to be cut in half. I don’t want that to happen to you.

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Nebius Group N.V. (NASDAQ:NBIS) provides AI-focused infrastructure, including GPU-based cloud platforms and tools that support the development of advanced models. A caller inquired about the stock during the January 7 episode, and Cramer replied:

Well, I’ll tell you, a younger person came to me, asked me about stocks that were losing money the other night… And I said to him, losing too much money, and I said, you’re young, you can speculate on it. A person who’s a little bit older, too much risk to it. But I blessed it for him because he’s very young. Otherwise, no, the opportunities are better elsewhere.

While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.