Rothschild Redburn initiated Sell ratings on AI infrastructure firms Nebius Group and CoreWeave, citing concerns over declining GPU rental prices, increased in-house hyperscaler capacity, and expensive financing that could squeeze profit margins. Despite strong recent revenue growth and large backlogs, the firm warns that the economics of AI compute may deteriorate as market capacity expands. Investors should watch key factors like utilization, contracted revenue, power costs, and financing to see if these downgrades prove accurate. The downgrade highlights risks in the AI cloud infrastructure sector amid a competitive and capital-intensive environment.
Nebius Group shares rose 5.26% to USD 235.30 while CoreWeave gained 6.80% to USD 86.89 on Pluang as of Sep 22, 2026 02:11 WIB. Despite Rothschild Redburn's Sell ratings due to concerns over falling GPU rental prices and margin pressures, Nebius holds a market cap of $60.77B and CoreWeave $44.87B on the platform. Pluang order activity shows a mixed investor stance, with 58% Sell for Nebius and 47% Sell for CoreWeave, reflecting some caution amid the competitive AI infrastructure sector.
Nebius Group has been upgraded to a buy rating following a significant improvement in its operating margin, which nearly broke even in the second fiscal quarter after a -32% loss in the first quarter. This turnaround is attributed to capacity expansi...
Nebius Group is viewed as a strong buy with an expected 40% price increase over the next year and potential to double in two years. The company benefits from repeated price hikes in GPUs and CPUs, innovative auction-based pricing, and strong demand t...
Nebius Group N.V. announced a price increase of up to 20% on its chips, including older models like the H100, effective October 1st. This move suggests robust demand for AI hardware despite public agreements by industry leaders to moderate AI develop...
Nebius Group NV announced price increases for its on-demand GPU cloud services starting October 1. Prices for Nvidia H100 GPU instances will rise by about 17%, and the newer Nvidia B300 GPU rates will increase by about 21%. Additionally, AMD EPYC Gen...
Nebius Group announced higher on-demand rental rates for AI GPUs starting October 1, signaling strong demand and limited supply. This move lifted Nebius stock by 10% and IREN by 6%, as both benefit from the ability to charge more for scarce GPU capac...
