SharonAI Holdings (SHAZ) shares got a nice boost on Friday after the company announced it's teaming up with NVIDIA (NVDA) to build a massive AI factory in Australia. We're talking a 72-megawatt facility packed with up to 40,000 of NVIDIA's latest Grace Blackwell GB300 GPUs. That's a lot of computing muscle.

This isn't just a one-off project. The deal is part of a six-year strategic compute collaboration that expands SharonAI's total AI factory capacity to 132 megawatts. The company is positioning itself as a go-to provider for sovereign AI solutions—basically, giving Australia its own homegrown AI infrastructure so startups, enterprises, and researchers don't have to rely on foreign clouds.

"This collaboration with NVIDIA marks a pivotal moment for SharonAI," the company said in a statement. "It enables us to deploy additional GPU resources to meet the surging demand from AI startups, enterprises, and researchers."

Shares were up 2.08% at $73.00 at the time of publication, according to market data. That's a nice pop, but let's look under the hood.

Technical Check: Momentum Is Cooling

Over the past year, SharonAI stock has had a rough ride, down about 24.73%. But recently, it's been on a bit of a tear. At $72.27, it's trading 16.5% above its 20-day simple moving average of $66.08 and a whopping 52.6% above its 50-day SMA of $50.47. That's a strong short-term rally.

However, the MACD (a momentum indicator) is currently below its signal line, suggesting that upside momentum is fading. Translation: the stock might be taking a breather unless it can reclaim that baseline. Key resistance sits at $87.00, a level where rebounds have stalled before. On the downside, the 20-day SMA at $66.08 is a key support level to watch.

Earnings and Analyst Views

SharonAI is expected to report its next quarterly results on August 15, 2026. Analysts are forecasting a loss of 47 cents per share on revenue of $7.54 million. Not exactly profitable yet, but the NVIDIA deal could change the narrative.

Wall Street is cautiously optimistic. The stock carries a Buy consensus rating with an average price target of $46.67—that's actually below the current price, so there's some disconnect. Recent analyst actions include:

• Compass Point: Initiated with Buy, $50 target (April 22)
• LUCID CAPITAL MARKETS: Initiated with Buy, $50 target (April 17)
• Cantor Fitzgerald: Initiated with Overweight, $40 target (April 9)

So analysts are bullish, but their targets are below where the stock is trading now. That could mean they see upside from here, or that the stock has run ahead of fundamentals. Time will tell.

For now, SharonAI is making big moves in the AI infrastructure space, and NVIDIA is along for the ride. If the AI factory delivers, this could be a game-changer for the company—and for Australia's AI ambitions.