Nebius Group N.V. (NASDAQ:NBIS) saw its stock plummet 5.07% in pre-market trading on Friday, following a stern warning from CNBC's Jim Cramer and a broader selloff in AI-related stocks. The Dutch AI infrastructure company, which had been riding high on the AI wave, is now facing increased scrutiny over its business model and profitability.

Jim Cramer, the influential TV 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 pre-market drop in Nebius's stock price also comes in the wake of a broader market reversal following Nvidia's earnings report. Despite initial gains, many AI-related stocks, including Nebius, saw their share prices tumble on Thursday. 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. As investors reassess the sector, Nebius and its peers may face continued pressure to prove their business models can translate hype into profitable growth.