Shares of Nebius (NASDAQ: NBIS), the Dutch AI infrastructure company, plummeted 5.78% in Friday's trading session, extending its recent downward trend amid growing concerns over the profitability and capital expenditure of AI-related companies. The sharp decline follows a stark warning from prominent TV host Jim Cramer and a broader selloff in AI stocks.

The selloff in Nebius shares gained momentum after Jim Cramer, the influential CNBC host, took to social media platform X on Thursday to caution investors about Nebius and similar AI infrastructure companies. "The pain in the NBIS's is not over," Cramer stated, expressing disbelief at the "capital destruction" occurring in these firms. He pointed out that these companies often undertake massive capital expenditures to secure deals with tech giants, driving their stock prices higher through flashy press releases, but without demonstrating tangible profits or long-term shareholder value.

The plunge in Nebius stock also comes in the wake of a broader market reversal following Nvidia's recent earnings report. Despite initial gains, many AI-related stocks, including Nebius, saw their share prices tumble. This shift in sentiment reflects growing concerns about the sustainability of the AI boom and the financial health of companies heavily invested in AI infrastructure. Nebius has already shed more than 37% of its value since reaching an all-time high last month, reflecting increasing investor skepticism about the sector's near-term prospects. As the market reassesses the AI sector, Nebius and its peers may face continued pressure to prove their business models can translate hype into profitable growth.