Shares in Australian-based artificial intelligence infrastructure provider Sharon AI (ASX:NASDAQ:SHAZ) grew 21.5% overnight, fueled by the announcement of a US$1.25 billion supply agreement.
The firm saw its stock price on April 2 close at US$27.62—peaking at US$28.88—effectively reversing a period of underperformance since its February debut.
The rally comes despite the company reporting a widened net loss of US$39.8 million in its maiden earnings release, a significant jump from the previous year’s US$3.9 million deficit.
The five-year infrastructure deal with ESDS Software Solutions will see Sharon AI deploy an 8200-unit cluster of high-end Nvidia B300 chips and 17.80 petabytes of storage within its Australian data centres.
Revenue from the project is slated to commence in the third quarter of 2026.
Further bolstering investor confidence, CEO James Manning confirmed a strategic partnership with design powerhouse Canva, beating out industry titan Amazon Web Services in a highly competitive bidding process.
While Sharon AI’s revenue grew to US$1.6 million in 2025, the company remains heavily reliant on a small client base, with three customers accounting for 82% of total earnings.