Nebius Group N.V. (NBIS) stock fell about 4% in Tuesday's premarket trading as investors pulled back from AI infrastructure stocks amid rising financing concerns.

The decline came as Nasdaq futures slipped 0.47%, while S&P 500 futures fell 0.08%.

Nebius shares remain more than 40% below their 52-week high as investors reassess the risks facing capital-intensive AI cloud providers.

AI Financing Concerns Weigh On Nebius

Rising borrowing costs and heavy data center spending have pressured the sector. Meanwhile, financing concerns at rival CoreWeave Inc. (CRWV) have added to investor anxiety.

Gartner also warned about potential consolidation among independent neocloud providers by 2030.

However, Truist remains bullish on Nebius. The firm reiterated its Buy rating and $355 price forecast. It argued that the failed Firmus IPO does not necessarily signal broader weakness among neocloud providers with substantial contracted backlogs.

In contrast, Silvant Capital Management's Michael Sansoterra warned that neocloud providers face growing competition from larger cloud companies.

He expects major cloud platforms to capture most of the AI industry's profits due to their stronger balance sheets, infrastructure and customer relationships. Still, he believes some smaller providers could generate attractive returns.

The stock carries a consensus Buy rating with an average price forecast of $272.62. Recent analyst actions include Rosenblatt initiating coverage with a Buy rating and $304 price forecast on Oct. 8.

William Blair initiated coverage with an Outperform rating on Sept. 30. Meanwhile, BNP Paribas upgraded Nebius to Outperform and raised its price forecast to $399 on Sept. 24.

Technical Analysis: Bearish Momentum Persists

Nebius shares are trading below key moving averages, signaling continued selling pressure.

At the indicated trading level, the stock is 26.6% below its 20-day simple moving average (SMA) of $220.56 and 27.2% below its 50-day SMA of $222.45.

It also trades 7.1% below its 200-day SMA of $174.47, suggesting weakness in the longer-term trend.

Meanwhile, the moving average convergence divergence (MACD) indicator remains below its signal line. Its negative histogram points to continued bearish momentum.

The 20-day SMA also sits below the 50-day SMA, reinforcing the near-term downtrend. However, the 50-day SMA remains above the 200-day SMA.

The stock faces immediate resistance near $168.50, while support stands around $146.

NBIS Price Action

Nebius shares fell 4.08% to $163.30 in Tuesday's premarket trading, according to market data.