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    WhiteFiber (WYFI): Valuation Check After $865 Million, 10-Year AI Colocation Deal With Nscale

    Simply Wall St·12/20/2025 15:23:31
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    WhiteFiber (WYFI) just landed a 10 year, roughly $865 million colocation deal with Nscale at its NC 1 AI data center campus, locking in a sizable revenue stream tied to advanced AI workloads.

    See our latest analysis for WhiteFiber.

    Investors clearly took notice of the Nscale deal, with a 1 day share price return of 17.1 percent lifting WhiteFiber to 16.74 dollars. However, the 90 day share price return of negative 36.4 percent shows sentiment is still recovering rather than in full on momentum mode.

    If this kind of AI infrastructure story interests you, it could be a good moment to explore other high growth tech and AI names using high growth tech and AI stocks for fresh ideas.

    With the stock still down sharply over 90 days yet trading at less than half the Street’s target, is WhiteFiber quietly setting up a mispriced AI infrastructure runway? Or is the market already discounting all that future growth?

    Price to Sales of 9.1x: Is it justified?

    WhiteFiber's last close at 16.74 dollars comes with a steep price to sales ratio of 9.1 times, signaling a premium stance versus peers and the wider US IT sector.

    The price to sales ratio compares the company’s market value to its annual revenue, a common yardstick for fast growing, still unprofitable infrastructure and software plays where earnings are not yet a reliable guide.

    In WhiteFiber's case, that 9.1 times sales tag suggests investors are already paying up for the company’s rapid top line expansion and the expectation that forecast revenue and earnings growth will eventually justify today’s valuation.

    However, compared with both the broader US IT industry on 2.3 times sales and the peer average of 2.1 times, WhiteFiber's multiple is dramatically higher. This implies the market is assigning it a growth and strategic premium that only sustained execution and future profitability can validate.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price to Sales of 9.1x (OVERVALUED)

    However, risks remain, including heavy reliance on sustained AI demand, rapid capacity build out and the challenge of turning fast revenue growth into durable profitability.

    Find out about the key risks to this WhiteFiber narrative.

    Build Your Own WhiteFiber Narrative

    If you see the numbers differently, or want to dig into the assumptions yourself, you can build a custom story in minutes, starting with Do it your way.

    A great starting point for your WhiteFiber research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.