Jim Cramer says it's not the time to buy surging AI stock
Jim Cramer says it's not the time to buy surging AI stock.
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Wall Street rewards patience just as often as conviction. Here, the smartest move isn't buying more but knowing when to wait. I make more money in the market by sitting on my hands than I make by trying to be part of every move.
Jim Cramer spent just a few seconds on July 16 explaining that is what you need to do on Nebius Group ( NBIS ). Despite a steep drop in the stock, Cramer didn't trash the company. In fact, he said the opposite.
"It's a very good company," the Mad Money host told viewers during his lightning round.
But good companies and good entry points are two very different things. And right now, Cramer is drawing a hard line between them.
Nebius has been one of the most explosive AI infrastructure stocks of the past year — a 222% one-year return, according to Yahoo Finance . A $775 million debt facility just closed. Contracts with Microsoft and Meta. That's the kind of resume that makes investors want to jump in immediately.
Cramer was blunt during the July 16 lightning round segment.
"Nebius is at the nexus of the craziness right now," he said. "It's not a crazy company; it's a very good company."
"This stock is not done going down. There'll be another time to buy it, but that time is not now," he continued.
His overall message is one worth sitting with. Cramer isn't calling Nebius broken. He's calling the entry point wrong. And looking at my chart, I can also see a similar case.
NBIS hit a 52-week high of $299 on June 22, according to Yahoo Finance data. Since then, the stock has retraced approximately 42%. On July 16 alone, shares fell about 13.90%, closing at $171.77. That kind of selling pressure, sustained over weeks, rarely resolves overnight.
Here's where it gets interesting. Nebius delivered a financing milestone that most growth companies would celebrate.
The company closed its first senior secured debt facility for approximately $775 million to expand its artificial intelligence (AI) cloud platform, according to a company statement .
The facility is backed by deployed graphics processing unit (GPU) infrastructure, is contracted for cash flows from an investment-grade customer, matures in 2030, and is priced at SOFR plus 2.50%.
Nebius also stated it now holds more than $40 billion in contracted revenue from investment-grade customers, including Microsoft and Meta.
My review of the data points to two compounding pressures. First, the facility itself, while substantial, also highlights the capital intensity of Nebius's growth model. And investors are recalibrating how much that costs.
Over the past 90 days, Nebius insiders completed 33 transactions — all sales — totaling approximately $27.8 million in net value, according to Insider Screener .
Key executives, including the chief executive officer and chief technology officer, participated in those sales. When leadership sells at this pace, the market tends to notice.
