WhiteFiber Stock in Focus After Analyst Adjustment and Major New Data Center Deal

Shares of data center and AI infrastructure firm WhiteFiber Inc. (NASDAQ: WYFI) are drawing investor attention following a significant contract announcement and a notable, yet nuanced, analyst update.

On December 24, analysts at B. Riley maintained their Buy rating on WhiteFiber but adjusted their price target downward to $40 from $44. The revision, attributed to updated financial modeling with more conservative assumptions for cloud services, came just days after the company unveiled a strategic 10-year colocation pact with UK-based Nscale at its NC-1 campus.

The initial agreement for 40 megawatts (MW) of critical IT load is projected to bring in approximately $865 million in total revenue for WhiteFiber. Billing for the first 20 MW is slated to begin by April 30 of this year, with the remaining 20 MW following by May 30. The deal includes 3% annual rate escalators and milestone-based payments.

"While we've moderated our near-term EBITDA estimates, the Nscale agreement validates WhiteFiber's asset quality and provides a substantial, long-term revenue backbone," the B. Riley report suggested, referencing lowered Q2 2026 and full-year 2026 EBITDA forecasts.

WhiteFiber has already invested $150 million in equity at the site and is in advanced talks with institutional lenders to formalize a credit facility early next year. The company believes the campus has the potential to eventually support up to 200 MW of total electrical supply, positioning it to capitalize on the relentless demand for high-performance computing and AI-driven data processing.

Market Context & Analysis: The move comes as the global data center market experiences unprecedented growth, fueled by the AI boom and a shift toward onshoring critical technology infrastructure. Companies like WhiteFiber, which provide the essential physical backbone for AI operations, are becoming increasingly pivotal, even as they navigate the capital-intensive nature of expansion.

Reader Reactions:

• Michael R., Portfolio Manager: "This is a textbook 'grind higher' story. The lowered price target is a timing detail, but a 10-year, near-billion-dollar contract is a fundamental game-changer. It de-risks the model significantly."
• Sarah Chen, Tech Analyst: "The capex intensity worries me. They need that credit facility secured on favorable terms. The stock will likely tread water until we see concrete progress on the financing and the first milestone payments from Nscale."
• Dave "StockWolf" K. (Online Commentator): "Are you kidding me? They get an $865M deal and the 'experts' LOWER the target? This is Wall Street manipulation 101. They want to shake out weak hands before the real climb. WYFI is a coiled spring!"
• Priya Sharma, Infrastructure Investor: "It's not just about this one deal. It's about the optionality. That campus can scale to 200MW. In today's supply-constrained market, that potential land bank is incredibly valuable."

WhiteFiber designs, develops, and operates data centers, offering colocation and cloud-based high-performance computing (HPC) GPU services tailored for AI workloads.

Disclosure: This analysis is based on publicly available information and is for informational purposes only. It is not investment advice.