NEBIUS (NBIS) stock tumbled 5.07% in pre-market trading on Friday, extending its recent downward trend amid growing concerns over AI infrastructure companies' profitability and capital expenditure. The plunge follows a turbulent period for AI-related stocks and a stark warning from prominent TV host Jim Cramer.

The pre-market decline comes on the heels of Nvidia's recent earnings report, which initially boosted AI stocks but led to a subsequent sell-off. NEBIUS, like other AI infrastructure companies, has been caught in this market volatility. The stock has already shed more than 37% of its value since reaching an all-time high last month, reflecting growing investor skepticism about the sector's near-term prospects.

Adding to the pressure on NEBIUS shares, Jim Cramer issued a warning to investors about the company and similar AI infrastructure stocks. Cramer expressed concern about "capital destruction" due to massive capital expenditures undertaken by these companies to secure deals with tech giants. He advised investors to "stay away" from such stocks, citing significant losses and questioning the long-term value creation for shareholders. This cautionary stance from a high-profile market commentator likely contributed to the pre-market sell-off, as investors reassess the risks associated with AI infrastructure investments.