This AI Stock Is Australia's Answer to CoreWeave. It Just Notched a Deal With Nvidia. -- Barrons.com

Dow Jones06-12 20:30

By Nate Wolf

A lot is going well for Australian cloud-infrastructure provider SharonAI Holdings. Now it has a big new deal with the largest company in the U.S.

Sharon AI and Nvidia announced a six-year agreement on Friday to stand up 72 megawatts of new data-center capacity in Australia. The pair will deploy up to 40,000 Nvidia artificial-intelligence processors to serve startups, enterprises, and university researchers.

Nvidia will get both standard product revenue for its chips and a cut of the cloud revenue from Sharon AI's hosting services. The setup gives Nvidia a reliable earnings stream while allowing Sharon AI to expand its services to less moneyed customers, the companies said.

Sharon AI stock jumped 10% to $78.79 on the news, though that is just another day at the office for the stock. As of Thursday's close of trading, shares had surged 138% since Sharon AI went public for $30 in February.

The deal barely registered on Nvidia's price chart. Shares were up 0.6% on Friday.

AI has given tiny start-ups the chance to become sizable, relevant stocks seemingly overnight. Such is the case with Sharon AI, which was founded Dec. 30, 2024, and now has a market capitalization of $1.2 billion and counting. The company has positioned itself as the Australian version of a neocloud -- like CoreWeave or Nebius Group -- rapidly outfitting data centers with chips and other hardware for end users.

"This strategic compute collaboration with Nvidia marks a pivotal moment in Sharon AI's mission to deliver sovereign, large-scale AI compute infrastructure," said Sharon AI CEO James Manning.

Sharon AI already was a certified Nvidia Cloud Partner before Friday, but the shine of a new Nvidia endorsement is often enough to boost stocks -- including those much larger than Sharon AI.

The agreement expands Sharon AI's total "AI factory" capacity to 132 megawatts, with 102 megawatts now contracted to end customers. The company expects to have more than 55,000 Nvidia processors deployed by the middle of next year.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

June 12, 2026 08:30 ET (12:30 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment