Megaport (ASX: MP1) stunned the market after its share price skyrocketed more than 35% in a single session, driven by a wave of major AI-related infrastructure deals. Investors rushed into the stock after the company revealed that its subsidiary, Latitude.sh, had secured long-term contracts for high-performance GPU, CPU, storage, and networking services for artificial intelligence workloads. The agreements are expected to generate roughly A$254 million in recurring revenue over the coming years, dramatically improving earnings visibility and strengthening Megaport’s position in the booming AI infrastructure sector.

The rally also reflects growing investor confidence in Megaport’s transformation from a cloud connectivity provider into a broader player in AI infrastructure. With demand for AI compute capacity exploding globally, the market sees Megaport as a potential beneficiary of the next wave of enterprise AI spending. The sharp move marks one of the company’s biggest trading sessions in years.

About Megaport (ASX: MP1)

Megaport is one of Australia’s best-known network-as-a-service companies, helping businesses connect quickly and securely to cloud platforms, data centres, and enterprise networks worldwide. Founded in 2013 by tech entrepreneur Bevan Slattery, the company was built around a simple idea: make global network connectivity as flexible and scalable as cloud computing itself.

Unlike traditional telecom providers that often require lengthy setup times and rigid contracts, Megaport uses a software-defined networking (SDN) platform that allows customers to activate connections in minutes. Businesses can instantly link to major cloud providers such as Amazon Web Services, Microsoft Azure, Google Cloud, Oracle Cloud, and hundreds of other services through Megaport’s global network ecosystem.

Over the past few years, Megaport has expanded aggressively across North America, Europe, Asia-Pacific, and Latin America. The company now operates in more than 1,100 enabled locations worldwide and serves over 3,000 customers globally. Its platform supports more than 37,000 active services, reflecting the growing demand for cloud connectivity, hybrid infrastructure, and AI-related networking solutions.

Recently, Megaport has become increasingly associated with the artificial intelligence infrastructure boom. In 2025, the company acquired compute infrastructure provider Latitude.sh, deepening its offerings in GPU, storage, and AI compute services. That move proved highly significant in 2026 after Megaport announced major AI infrastructure contracts worth around A$254 million, triggering a massive rally in the share price. Investors now view the company as more than a networking provider; they see it as a growing player in AI infrastructure, positioned to benefit from the exploding global demand for high-performance computing and cloud connectivity.

How Megaport Is Positioning Itself at the Centre of the Global AI Infrastructure Boom

For years, Megaport (ASX: MP1) was best known as a cloud networking company that helps enterprises connect to platforms like AWS, Microsoft Azure, and Google Cloud faster and more efficiently. But recently, the company has started evolving into something much bigger,m a serious player in the rapidly expanding AI infrastructure market.

The turning point came with Megaport’s acquisition of compute platform Latitude.sh in late 2025. The deal gave Megaport direct exposure to high-performance CPU and GPU infrastructure for artificial intelligence training, inference, cloud-native applications, and large-scale data processing. Suddenly, Megaport was no longer just moving data between clouds; it was becoming part of the computing layer itself.

That strategy is now starting to pay off in a major way. In May 2026, Megaport revealed that Latitude.sh had secured three major AI-focused contracts, totalling approximately A$254 million in contract value. The deals include GPU, CPU, storage, and networking services for US technology companies running AI and inference applications. Investors reacted immediately, sending Megaport shares soaring more than 35% in a single trading session.

What makes the story interesting is that Megaport is trying to combine two things enterprises increasingly need: compute power and low-latency connectivity. AI systems are incredibly data-hungry. Training and running modern AI models requires not only powerful GPUs but also fast and secure network infrastructure that can move massive amounts of data between clouds, data centres, and users with minimal delay.

Megaport believes its integrated platform can solve both problems at once. The company already operates across more than 1,000 global locations, and by combining networking with on-demand compute infrastructure, it is positioning itself as a flexible alternative to traditional hyperscale cloud providers.

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Technical Analysis for Megaport (ASX: MP1)

Source: TradingView

Megaport (ASX: MP1) has delivered a powerful technical breakout after surging more than 27% in a single session following major AI infrastructure contract announcements. The stock exploded through multiple resistance zones and closed near A$12.58 after hitting an intraday high of around A$13.51, confirming strong bullish momentum and heavy institutional buying. Volume also spiked sharply above average levels, which usually signals conviction behind the move rather than short-term speculation.

MP1 has now broken above the key psychological resistance zone near A$10.00–A$10.20, which had capped the stock for several months. That area may now act as major support on pullbacks. The next important resistance sits around A$13.50, followed by a broader resistance range near A$14.50 if bullish momentum continues.

However, traders should also note that the RSI on the daily chart has jumped above 80, placing the stock in heavily overbought territory. While strong momentum stocks can remain overbought for extended periods, this often increases the risk of short-term profit-taking or volatility after such a sharp rally.

Support level is at A$11.80, near the breakout candle's low. For risk management, aggressive traders may consider placing a stop-loss below A$11.70 to protect against a failed breakout. More conservative investors could use a wider stop near A$9.80 to allow for normal volatility while maintaining the broader bullish trend structure.

The technical picture remains strongly bullish, but after such a rapid move, short-term pullbacks or consolidation would not be surprising before the next directional breakout.

FAQs about Megaport (ASX: MP1)

Why did Megaport (ASX: MP1) shares surge more than 35%?

Megaport shares rallied sharply after the company announced major AI infrastructure contracts through its subsidiary Latitude.sh. The deals, valued at approximately A$254 million, boosted investor confidence in Megaport’s growth potential within the booming AI sector.

What does Megaport actually do?

Megaport is a network-as-a-service company that helps businesses connect to cloud platforms, data centres, and enterprise networks through its software-defined networking platform. The company now also provides AI compute and infrastructure services following its acquisition of Latitude.sh.

Is Megaport technically overbought after the rally?

The stock’s RSI recently crossed above 80, suggesting MP1 is in overbought territory in the short term. While the overall trend remains bullish, traders may still see volatility or consolidation after such a rapid price surge.