Why Are EVTV Shares Climbing Nearly 10% Today?

• Under the deal, EVTV would acquire 100% of AZIO AI’s outstanding shares.
• Upon completion, EVTV's long-term strategy would pivot to focus on AI infrastructure and applied artificial intelligence systems. 
• The rapid growth of companies like CoreWeave underscores the scale of demand for enterprise-grade AI compute infrastructure, AZIO’s CEO said.

Envirotech Vehicles, Inc. (EVTV) shares climbed nearly 10% in Thursday’s premarket trade after additional details about its AZIO AI acquisition deal valued the infrastructure player at $480 million.

AZIO AI issued a letter of intent on Thursday stating that an independent third party valued the company and that EVTV would acquire 100% of its outstanding shares. Upon completion of the deal, EVTV would reposition its long-term strategy to focus on AI infrastructure and applied artificial intelligence systems.

Earlier this week, Envirotech Vehicles announced the AZIO deal, indicating its evolution into an AI infrastructure platform, shifting away from its current focus on manufacturing electric vehicles and heavy-capacity drones.

CoreWeave-Style Model

The latest pivot comes amid increasing global demand for artificial intelligence and enterprise-grade GPU systems. The deal would frame AZIO AI as the primary operating entity, leveraging EVTV’s public market presence. EVTV has a market capitalization of about $3.86 million at the time of writing.

"The rapid growth of publicly traded AI infrastructure companies such as CoreWeave, which has achieved an approximately $32 billion market capitalization, underscores the scale of demand for dedicated, enterprise-grade AI compute infrastructure. We believe there is a substantial opportunity to build a competitive, publicly traded, infrastructure-first AI company by delivering scalable GPU compute, modular data-center deployments, and flexible, capital-efficient solutions for governments, institutions, and enterprises," said Chris Young, Chief Executive Officer of AZIO AI.

EVTV is the latest among numerous smaller public companies shifting focus toward AI systems and data-center infrastructure, even as markets worry about inflated AI valuations. Bitcoin mining company Hut 8 Corp. (HUT) announced on Wednesday that it had signed a $7 billion lease for an AI data center with Fluidstack. Cipher Mining (CIFR) and TeraWulf (WULF) announced similar pivots to AI infrastructure in the past few months.

How Did Stocktwits Users React?

On Stocktwits, the retail sentiment around EVTV remained at ‘extremely bullish’ levels for over a week and message volume stayed at ‘extremely high’ levels.

Shares of EVTV are down over 93% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

Share

·

Add us on