NextDC Shares Extend Rally Above A$10 as Takeover Bets Defy Global AI Rout Following Goodman Share Raid

SYDNEY — Shares of NextDC Ltd. climbed another 5.6% on Friday, pushing above A$10 for the first time in weeks and extending a dramatic rebound sparked by a surprise stake purchase from Goodman Group and Digital Realty Trust, even as a global selloff in artificial intelligence stocks battered markets across Asia.

NextDC shares rose 55 cents to close at A$10.40, the session high, after trading as low as A$9.40. About 18.8 million shares changed hands, and the gain lifted the company's market value to roughly A$7.9 billion.

The advance builds on a historic session. NextDC shares closed 50.84% higher on Thursday after Goodman Group and Digital Realty moved to acquire stakes of up to 9.9% in the company. It was the stock's biggest jump since 2010.

Bucking the AI selloff

Friday's gain stood out against a weak market. The ASX 200 fell about 0.5% to 9,020 points. Miners fell 3.0% and tech stocks 2.3% after a chip rout on Wall Street, sparked by fears of tighter oversight of AI and data center investment following the Democrats' sweep of the U.S. Congress.

U.S. data center operators were hammered. IREN, Applied Digital, CoreWeave and Nebius Group each plunged more than 12% overnight.

Shares now above the raid price

NextDC is now trading well above the price paid by its new shareholders. The Goodman and Digital Realty consortium bought shares at A$9.50 each through Ackland Investments No 1 Trust, an equally owned vehicle, in a stake worth about A$730 million.

Trading above that level suggests some investors are betting on further corporate activity. Goodman and Digital Realty told investors they had no current intention of making a takeover bid but reserved the right to do so.

Board cautious

NextDC's board has kept its distance. It called the move "opportunistic," noting it came two weeks after the company disclosed a power supply delay at its M3 Melbourne data center and revised its fiscal 2027 guidance.

The company said it was open to genuine offers. "Any bona fide approaches will be considered by the board on their merits and in the best interests of all NextDC shareholders," the company said.

Brokers weigh in

Analysts are questioning the price. Morgan Stanley said it was "intrigued" by Goodman's move, particularly after the company emphasized capital discipline at its quarterly trading update a day earlier, and suggested the A$9.50 price could undervalue NextDC's existing and developing infrastructure.

Recovering from October collapse

Despite the rally, the stock remains well below its earlier levels. NextDC shares lost more than 40% this year, mostly in late October after the company paused all future developments and slashed revenue forecasts, wiping out about A$3 billion in a single day.

The shares are still about 30% lower than a year ago. Investors will watch for substantial holder notices confirming the size of the Goodman-Digital Realty stake and for any formal approach.