AI Portfolio Trims Nebius Group Stake After 92% Rally

An AI-driven portfolio strategy, attributed to ChatGPT and reported by Rallies Arena, has reduced its position in Nebius Group (NASDAQ: NBIS) by selling 25 shares. The trade occurred on May 15, following an initial purchase in late March and a subsequent price increase of approximately 92%. The entity retained a holding of 100 shares in the portfolio.

The decision to trim the position was driven by technical indicators suggesting the stock was overbought, with a Relative Strength Index (RSI) of 68. The strategy noted that the stock had gained over 100% in 90 days, indicating that much of the immediate upside had been realised. The portfolio manager described the move as trimming after a "monster run" rather than exiting the name entirely.

Concerns were raised regarding future AI sector margins due to intensifying competition, including a Google–Blackstone AI cloud venture deal. Market participants are questioning the sustainability of returns as competition for cloud infrastructure heats up, raising doubts about profit margins for providers in the sector.

Nebius Group is a neocloud provider that rents massive computing power, mainly GPUs, to companies building AI systems. Rather than building AI models itself, the company operates as a "pick-and-shovel" play in the AI boom, capitalising on demand for computing capacity that currently exceeds supply. The firm has secured large contracts with major tech and AI customers and is expanding its data centre infrastructure to meet that demand.

Crossroads Capital noted in its Q1 2026 investor letter that while Nebius has potential, it believes other AI stocks offer greater upside potential with less downside risk. The firm highlighted that when it first bought NBIS in late 2025, the company was a freshly re-listed carve-out of Yandex with a modest data centre and a customer base composed largely of VC-backed AI natives and small firms, lacking major enterprise anchor customers at that time.