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<\/a> <\/p>\nMichael Burry of Scion Asset Management <\/p>\n
Valuation: <\/p>\n
The stock looks expensive on conventional metrics. It trades at 53 times trailing sales and 20.5 times forward sales, compared with a sector median of 3.7 and 3.4 times, respectively. PE (TTM) is 1,690, and short interest is at about 25%. <\/p>\n
Bear Case: <\/p>\n
Short-term compute deals are priced about twice as high as midterm one- to three-year contracts, the opposite of how pricing usually works, where longer commitments get better rates. Michael Burry sees this as a sign the market is overvaluing near-term AI capacity relative to what it may be worth once more supply comes online, and questions whether Nebius’s decision to extend its server depreciation schedule from four to five years fits with pricing that implies compute value could drop sharply over time. <\/p>\n
While we acknowledge the risk and potential of NBIS as an investment, our conviction lies in the belief that some AI \u00a0stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NBIS and that has 10,000% upside potential, check out our report about the cheapest AI stock<\/a>. <\/p>\n READ NEXT:\u00a033 Stocks That Should Double in 3 Years<\/a>\u00a0and\u00a0Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy<\/a>.\u00a0 <\/p>\n