E2E Networks stock swings from 5% lower circuit to upper circuit on Nvidia GPU capacity expansion plan

The reversal represented a nearly 10.5 percent recovery from the day's low. The sharp turnaround followed the company's disclosure to stock exchanges that it plans to add approximately 5.4 megawatts (MW) of capacity to support NVIDIA HGX B300 systems and other Blackwell GPUs. In its regulatory filing, E2E Networks said its existing infrastructure capacity stands at approximately 9.2 MW, which is being utilised to provide GPU cloud infrastructure and other AI-related services.

The proposed addition of 5.4 MW represents an expansion of nearly 59 percent over its existing capacity, potentially taking the company's total infrastructure capacity to approximately 14.6 MW. The company said the expansion would help it meet fast-growing demand for GPUs and related services. However, E2E Networks did not specify a definitive timeline for the expansion or the investment required.

It said the deployment would be undertaken in accordance with its infrastructure plans and anticipated demand for AI computing services. The company plans to finance the expansion through a combination of internal accruals and debt. Earlier on Monday, E2E Networks shares had hit the 5 percent lower circuit, extending their decline to a seventh consecutive session amid selling pressure on AI-linked stocks.

The weakness came against a backdrop of concerns over heavy AI-related capital expenditure globally. Meta's earnings report had revived investor concerns over the scale of spending on artificial intelligence infrastructure, weighing on sentiment towards AI-related companies. The stock has gained 196.3 percent so far in 2026, significantly outperforming the Nifty 50, which has declined approximately 13 percent over the same period. At Rs 594.35 per share, E2E Networks commanded a market capitalisation of approximately Rs 12,100 crore.