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.

Photo by Chris Liverani on Unsplash 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 potential of NBIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.