Shares of Nebius Group (NBIS), a leading AI infrastructure company, plummeted 5.11% in intraday trading on Wednesday, despite announcing a significant new deal with Meta Platforms. The stock's decline comes in the wake of the company's third-quarter earnings report, which revealed mixed results and raised questions about the sustainability of AI infrastructure demand.

Nebius reported a staggering 355% year-over-year increase in revenue, reaching $146.1 million for the third quarter. However, this figure fell short of the consensus estimate of $155.11 million, disappointing investors who had high expectations for the AI infrastructure provider. On a positive note, the company's loss per share of 40 cents beat analyst projections of a 49-cent loss.

Adding to the complex picture, Nebius announced a new $3 billion deal over five years with Meta Platforms Inc. (META), which initially sparked a 1.56% increase in after-hours trading. However, this enthusiasm was overshadowed by broader concerns about the AI infrastructure sector. Industry experts are debating the long-term value and useful life of current-generation AI processors, with different depreciation assumptions potentially making or breaking business models in the space. The stock's decline reflects growing investor caution about the sustainability of the AI boom and its impact on companies like Nebius.