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

The sell-off was largely triggered by Jim Cramer's cautionary statements about Nebius and similar AI infrastructure stocks. On Thursday, Cramer took to social media platform X, warning investors that "The pain in the NBIS's is not over." He expressed disbelief at the "capital destruction" occurring in these firms, criticizing their massive capital expenditures to secure deals with tech giants without demonstrating tangible profits or long-term shareholder value. Cramer advised investors to "stay away" from such stocks, citing significant losses and questioning the sustainability of their business models.

Adding to the pressure on Nebius shares is 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 investor skepticism about the sustainability of the AI boom and the financial health of companies heavily invested in AI infrastructure. The stock has already shed more than 37% of its value since reaching an all-time high last month, highlighting the volatile nature of the AI sector and the challenges these companies face in translating hype into profitable growth.