WhiteFiber (WYFI) Plunges 2.10% on Two-Day Slide, AI Sector Volatility Reignited

WhiteFiber (WYFI) fell 2.10% on Thursday, marking its second consecutive day of declines as the stock hit an intraday low of $25.32—the lowest level since October 2025. The selloff accelerated after a 2.67% drop within the session, extending the two-day loss to 3.67% and reigniting concerns about near-term volatility in the AI infrastructure sector.

Recent analyst activity has painted a mixed picture for the stock. While Macquarie upgraded its price target to $32.00 and Needham maintained a "Buy" rating at $34.00, a "Sell" downgrade from one firm highlighted diverging views on valuation. The company’s Q2 2025 financials, however, remain a positive anchor: revenue of $18.7 million exceeded estimates, signaling sustained demand for its GPU cloud services. This outperformance, coupled with a $23.9 million capital raise from a fully exercised IPO over-allotment option, has historically supported growth narratives.

Operational expansion is central to WYFI’s momentum. The firm is scaling its Montreal data centers (MTL-2 and MTL-3) to 16 MW by year-end, with a 24 MW North Carolina facility (NC-1) expected in early 2026. Strategic partnerships, including a 5 MW colocation deal with Cerebras, underscore its vertically integrated model. These developments align with a broader pipeline of 1,300 MW in potential projects, though execution risks remain tied to power supply agreements and customer lease conversions.

Investor sentiment is further complicated by the expiration of the IPO quiet period in late September, which led to a 5.1% sell-off amid mixed analyst commentary. While recent volatility reflects sector-wide corrections, the stock’s proximity to its 12-month high suggests underlying confidence in its AI infrastructure positioning. Key watchpoints include Q2 earnings guidance, data center deployment timelines, and macroeconomic headwinds that could temper demand for high-performance computing resources.