Nebius Group NV (NBIS)

Investing.com -- Shares of Nebius fell 8.0% in morning trading after reports emerged that Nvidia halted its AI Compute Partnership revenue-sharing program, a financing initiative that had been announced as recently as July 1 and offered credit support to AI cloud providers in exchange for a portion of their revenue. The abrupt pause of the program — reportedly driven by antitrust concerns — rattled investor confidence in the neocloud business model, which relies heavily on Nvidia GPU financing arrangements to fund rapid capacity expansion.

The sell-off was not isolated to Nebius. Peer neocloud operators CoreWeave and IREN Limited also fell sharply in early trading, underscoring that the market was repricing the entire sector rather than reacting to any Nebius-specific development. Adding a layer of complexity, Truist Securities had just initiated coverage of Nebius with a Buy rating and a $355 price target on September 9 — implying substantial upside — but the bullish analyst call was overwhelmed by the negative structural implications of Nvidia's program reversal for the neocloud industry at large.

The broader market provided no cushion. The NASDAQ composite declined 1.2% today, while the S&P 500 slipped 0.7%, reflecting a risk-off tone across technology and growth equities. Nebius's decline of 8.0% significantly underperformed even this weak tape, reflecting how acutely the neocloud sub-sector was hit by the Nvidia news. The stock, which had surged dramatically from its 52-week low of $73.52 to a high of $299.86, remains well off its peak and is now trading at $206.54.

The combination of a sector-defining negative catalyst — the removal of a key financing backstop that underpins neocloud growth strategies — alongside a weak macro backdrop and elevated valuation multiples created the conditions for today's sharp pullback. Until clarity emerges on whether Nvidia will resume or restructure the program, neocloud names including Nebius are likely to remain under pressure.