ARBB Stock More Than Doubles Aftermarket On Bagging $45M AI Data Center Order: Retail Says 'Get In'

Shares of ARB IOT Group Ltd. (ARBB) more than doubled in after-market trading on Tuesday after the company bagged a massive order. 

At the time of writing, ARB’s shares were up nearly 104% after the closing bell, following a 4.6% gain during the regular session.

ARB announced that it signed a product supply agreement with Gajah Kapitalan (GKSB) for an artificial intelligence (AI) data center in Malaysia.

ARB will supply 500 units of its ARB-222 AI servers to GKSB, allowing the company to tap into the growing AI data center segment. GKSB will use these systems to offer access to advanced computing solutions to local businesses, research institutions, and individuals in Malaysia.

At $45 million, this deal is three times as valuable as ARB’s current market capitalization, which stood at $13.45 million as of market close on Tuesday.

If the company’s stock manages to hold on to its after-market gains on Wednesday, its market capitalization will more than double. If it opens above the $1 mark, the stock will be at a 10-month high.

Earlier in February, ARB announced that it had signed a memorandum of understanding (MoU) with a Universiti Kebangsaan Malaysia (UKM) startup and GKSB. Still, details such as the deal's value were not known at the time.

“Such [an] order represents a significant milestone for the Company and highlights the growing demand for the AI Products. This not only strengthens our collaboration but also drives our continued growth and expansion in the market,” said Dato’ Sri Liew Kok Leong, CEO of ARB IOT.

One user expressed optimism about the ARB stock, advising others to “get in” before the real volume kicks in on Wednesday.

Another user underscored their bullish outlook, supporting it with a technical analysis of the stock.

ARB’s stock has gained nearly 93% in the last six months, but it is in the red over the past year, with a decline of more than 68%.

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