Gorilla Technology Group Inc. (NASDAQ:GRRR), an AI technology provider, is trading lower on Friday. The company outlined plans to enter the U.S. AI infrastructure market through its proposed first data center acquisition.
• Gorilla Tech stock is showing notable weakness. What’s behind GRRR decline?
Gorilla Targets 36 MW With First U.S. Data Center
Gorilla signed a non-binding letter of intent to acquire its first U.S. data center, which currently has 6 MW of utility capacity and a path to about 36 MW.
The local utility has backed roughly 30 MW of additional power, expected in about 18 months, subject to infrastructure work.
The revenue-generating site includes colocation operations, electrical and cooling infrastructure, office space, and carrier-neutral connectivity.
Gorilla is also assessing upgrades for high-density AI and GPU deployments, including expanded power distribution and direct liquid cooling.
The company is targeting completion by the end of November 2026, subject to due diligence, approvals and customary closing conditions. At this time, the company has not disclosed where the data center is in the U.S.
Shares declined, potentially reflecting investor caution around the non-binding deal, the roughly 18-month power expansion timeline, and execution risk tied to Gorilla’s broader U.S. buildout.
Gorilla Lays Out Broader U.S. Expansion Strategy
The proposed acquisition would serve as the foundation for Gorilla’s broader U.S. AI infrastructure strategy, which includes additional acquisitions, infrastructure expansion and customer-led AI compute deployments.
Chairman and CEO Jay Chandan said, “This is a defining step in Gorilla’s expansion into the United States.”
“Our ambition is to build beyond 100 MW over the next 12-18 months, combining owned infrastructure, AI compute capacity and long-term customer relationships,” Chandan added.
CFO Bruce Bower said the company is focused on acquiring infrastructure with both immediate utility and expansion potential while maintaining disciplined investment criteria.
GRRR Technical Outlook
Gorilla Technology remains under pressure, trading 20.2% below its 20-day SMA of $13.10, 23.9% below its 50-day SMA of $13.73 and 23.6% below its 200-day SMA of $13.68.
Trading below all three major averages points to a weak technical trend and could limit near-term rebounds.
Momentum also reflects heavy selling. The Relative Strength Index stands at 29.30, placing the stock in oversold territory.
Shares are down 45.61% over the past 12 months, while the 20-day SMA remains below the 50-day SMA, reinforcing the bearish near-term setup.
- Key Resistance: $11.50, a nearby level that could cap rebound attempts.
- Key Support: $9.00, near the 52-week low of $9.04.
Earnings and Analyst Outlook
Gorilla Technology’s next earnings report is estimated for Nov. 16.
Analysts expect EPS of 11 cents, down from 26 cents a year earlier, while revenue is projected at $38.69 million versus $26.48 million in the prior-year period.
Gorilla Technologycarries a Buy consensus rating with an average price target of $31.33.
Recent analyst actions include StoneX initiating coverage with a Buy rating and a $25 price target on Sept. 29, B. Riley Securities starting coverage with a Buy rating and a $25 target on Aug. 31, and Compass Point initiating coverage with a Buy rating and a $44 target on Aug. 18.
GRRR Stock Price Activity: Gorilla Technology shares were down 8.29% at $10.95 at the time of publication on Friday, according to Benzinga Pro data.
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