Shares of Hyperscale Data Inc. (NYSE: GPUS) tumbled 24% on Tuesday, reversing course after an extraordinary 400% rally the previous day that stunned Wall Street and drew intense scrutiny from investors.
The stock’s surge began after Hyperscale Data released preliminary first-quarter results showing revenue exceeded $25 million, a significant milestone for the micro-cap data infrastructure company.
The announcement included bullish full-year guidance, with management projecting 2025 revenue between $115 million and $125 million. The company also reported a one-time $9.7 million gain from the deconsolidation of Avalanche International, which boosted its bottom line.
Investor excitement was further fueled by news that Hyperscale Data will convert its Michigan facility into a next-generation artificial intelligence data center. Chief Executive William B. Horne said the company is streamlining operations and focusing on high-growth sectors, including AI infrastructure, to drive long-term value.
But the dramatic rally proved short-lived. On Tuesday, the stock plummeted as traders rushed to lock in profits, a common occurrence after such rapid gains in micro-cap stocks. The company’s modest market capitalization and thin trading volume amplified the volatility, making the shares especially sensitive to shifts in investor sentiment.
Despite the pullback, Hyperscale Data remains up sharply for the year. However, analysts caution that much of the recent performance was driven by a non-recurring gain rather than sustained business growth. The company’s future now hinges on its ability to deliver organic revenue expansion and successfully execute its pivot toward AI infrastructure.
As the dust settles, investors will be watching closely to see if Hyperscale Data can turn its bold ambitions into lasting results or if the recent volatility signals more turbulence ahead.