SharonAI Holdings Inc. (SHAZ) announced Thursday it signed a $1.32 billion cloud computing service agreement with a global artificial intelligence lab, while shares tumbled nearly 7% amid a broader market pullback in chip stocks. B. Riley analyst Fedor Shabalin characterized the decline as a buy-the-dip opportunity, noting this marks the company's third major capacity announcement in roughly five weeks. The Nasdaq traded lower by 0.58% by noon Thursday, contributing to pressure on high-performance computing stocks. B. Riley reiterated its $124 price target and Buy rating on SharonAI, highlighting the company's transition from early-stage execution challenges to a funded neocloud platform on an investment-grade trajectory.
SharonAI Signs $1.32B Cloud Computing Agreement With AI Lab
SharonAI announced Thursday it signed a cloud computing service agreement with a global artificial intelligence lab valued at $1.32 billion over five years. The company expects to deploy cloud computing solutions across data center infrastructure in New Zealand. Revenue from the contract is expected to commence across the first and second quarters of 2027.
CEO James Manning stated that the established data center infrastructure and future growth potential in the country provide SharonAI with a strong foundation for future expansion. Manning added that the firm continues to see strong demand from enterprise, government, hyperscale, AI native and research customers across Asia-Pacific and Rest of World.
B. Riley Maintains $124 Price Target Amid Stock Decline
B. Riley highlighted that this is SharonAI's third major capacity announcement in roughly five weeks, according to TheFly. Analyst Fedor Shabalin noted the firm would use Thursday's broad market pullback as an entry point. B. Riley reiterated its above-consensus $124 price target and Buy rating on SharonAI shares.
In an earlier note, B. Riley stated that SharonAI is well underway in its transition from an early-stage story burdened by execution and counterparty overhang into a funded neocloud on an investment-grade trajectory. SHAZ shares have doubled in value since their listing in February.
SharonAI Closes $1.6B Financing for Nvidia Collaboration
SharonAI recently announced the closing of its $1.6 billion private placement financing. The proceeds are intended to support its previously announced six-year strategic compute collaboration with Nvidia Corp. (NVDA). The firm intends to deploy one of Australia's largest AI Factories, including up to 40,000 Grace Blackwell GB300 GPUs and broader expansion plans.
In June, SharonAI announced an expanded strategic partnership under which it will deploy 600 petabytes of the VAST AI Operating System across its AI cloud infrastructure.
FAQ
What did SharonAI announce on Thursday?
SharonAI announced Thursday it signed a $1.32 billion cloud computing service agreement with a global artificial intelligence lab over five years, with deployment planned across data center infrastructure in New Zealand and revenue expected to commence in the first and second quarters of 2027.
Why did SharonAI stocks fall despite the major deal announcement?
SharonAI shares tumbled nearly 7% on Thursday amid a broader market pullback in chip stocks, with the Nasdaq trading lower by 0.58% by noon, though B. Riley analyst Fedor Shabalin characterized the decline as a buy-the-dip opportunity and reiterated the firm's $124 price target and Buy rating.
How much financing did SharonAI secure for its Nvidia collaboration?
SharonAI recently closed $1.6 billion in private placement financing intended to support its six-year strategic compute collaboration with Nvidia Corp., which includes plans to deploy one of Australia's largest AI Factories with up to 40,000 Grace Blackwell GB300 GPUs.
