SHAZ Stock Tumbles Today, But This Analyst Says Buy The Dip After Major Announcement — What’s The $1.32B Deal About?

• SharonAI announced on Thursday that 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.
• It expects revenue from the contract to commence across the first and second quarters of 2027.

Shares of high-performance computing company SharonAI Holdings Inc. (SHAZ) tumbled nearly 7% on Thursday, but B. Riley believes it might be a buy-the-dip opportunity.

According to TheFly, B. Riley highlighted that this is the company's "third major capacity announcement in roughly five weeks.” The firm’s analyst, Fedor Shabalin, noted that it would use Thursday’s broad market pullback as an entry point.

B. Riley also reiterated its "above-consensus" $124 price target and ‘Buy' rating on SharonAI shares. In an earlier note, B. Riley had highlighted 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."

Thursday witnessed a major pullback in chip stocks, with the Nasdaq trading lower by 0.58% by noon.

SharonAI’s $1.32B Deal

The firm announced on Thursday that it signed a cloud computing service agreement with a global artificial intelligence (AI) lab, valued at $1.32 billion over five years.

The company expects to deploy cloud computing solutions across data center infrastructure in New Zealand. It expects revenue from the contract 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 Sharon AI with a strong foundation for future expansion. He 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.”

SharonAI’s Strategic Financing

SharonAI had recently announced the closing of its $1.6 billion private placement financing, with the proceeds 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.

What Retail Traders Think Of SHAZ

On Stocktwits, retail sentiment continued to trend in ‘neutral’ territory with moderate chatter.

One user on the platform expressed skepticism about whether anyone’s buying the dip in the stock.

SHAZ shares have doubled in value since their listing in February this year.

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