SYDNEY — Shares of Megaport Ltd. rose sharply on Monday, outpacing the broader Australian market as investors returned to the network services company whose push into artificial intelligence infrastructure has made it one of the most closely watched technology stocks on the ASX.
Megaport shares climbed 1.03 Australian dollars, or 5.49%, to A$19.81 during Monday’s session. The stock traded between A$19.16 and A$19.89, with about 361,000 shares changing hands. The gain lifted the company’s market value to about A$4.7 billion.
It was not immediately clear whether the company had released new information to the market. Monday’s move came as the benchmark S&P/ASX 200 index rose about 0.7% by midday, helped by a rebound in mining stocks and a rally in technology shares.
Megaport shares are up about 36% over the past year.
From connectivity to AI
Founded in Brisbane and listed on the ASX in December 2015, Megaport built its business providing network-as-a-service technology that helps companies connect to cloud providers, data centers and other digital services on demand.
Over the past year, however, the company’s investment story has shifted toward artificial intelligence. Megaport has expanded into providing computing power, including access to graphics processing units used to run AI applications, positioning itself as an asset-light way for investors to gain exposure to demand for AI infrastructure.
That strategy produced a string of major contract announcements in the first half of 2026.
In April, Megaport said Latitude.sh had secured a 36-month compute and storage contract worth about A$35.4 million. In May, it announced three major contracts for GPU, CPU, network and storage services with two U.S.-based technology customers running AI applications and inference workloads.
In June, the company announced four new major contracts with a total contract value of about A$458.9 million and annual recurring revenue of roughly A$199 million, alongside a capital raising. It also outlined plans for a globally distributed AI inference cloud that would include an on-demand pool of GPUs.
The announcements fueled a dramatic rally. At one point, the shares surged about 70% in a single month.
Strong results, but higher losses
Megaport reported its full-year results for fiscal 2026 in August. Revenue rose 37% to about A$312 million, while earnings before interest, taxes, depreciation and amortization reached about A$77 million, a margin of about 25% and ahead of guidance.
The shares initially jumped to a record high of A$21.96 on the morning of the results. But enthusiasm faded as investors focused on the company’s widening losses. Megaport’s statutory net loss grew to A$39 million in fiscal 2026 from A$300,000 a year earlier, reflecting heavy investment in its expansion.
The stock subsequently fell about 21% over five trading days, a reminder of how volatile shares tied to the AI investment theme can be.
Analysts remain upbeat
Despite the volatility, analysts have remained broadly positive. Most brokers covering the stock rate it a buy, with some price targets as high as A$30.55, well above Monday’s trading levels.
Supporters argue that Megaport offers exposure to AI-driven demand with shorter implementation times and lower capital requirements than traditional data center operators. Critics caution that the company still needs to deploy capital effectively, deliver hardware on time, manage its reliance on a small number of large customers and prove that new contracts translate into strong returns.
What’s next
Megaport’s next earnings report is expected Oct. 29, according to Investing.com. Investors will be watching for progress on its AI contracts, growth in annual recurring revenue and any updates on spending plans.
For now, Monday’s rally suggests investors remain willing to back Megaport’s transformation from a cloud connectivity provider into an AI infrastructure player, even as questions about profitability persist.
