CIMG Stock Soars After Securing $124M in AI Computing Contracts
The deal value is nearly seven times the company's market capitalization, marking a decisive pivot from its legacy business into the high-demand AI infrastructure sector.
Shares of CIMG Inc. (NASDAQ: IMG) surged Friday after the company announced it has secured approximately $124 million in commercial contracts related to artificial intelligence computing power, a move that fundamentally reshapes its financial future and confirms a strategic pivot into the booming AI infrastructure industry.
The announcement catalyzed a sharp rally in the company's stock, which climbed nearly 7% to $1.30 in afternoon trading. The value of the new contracts represents a monumental shift for the firm, which currently has a market capitalization of just over $18 million and generated only $373,000 in revenue over the last twelve months.
According to an official company announcement, the agreements signal CIMG's formal entry into the computing power industry, which it has designated a core growth engine. The deals, secured in the fourth quarter of 2025, are comprised of several key agreements that highlight the company's new focus.
The largest component is a $106.5 million sales agreement for computing power equipment, facilitated through the company's subsidiary, Zhongyan Shangyue Technology Co., Ltd. Additionally, another subsidiary, Beijing Xinmiao Shidai Technology Development Co., Ltd., was shortlisted for a 2025 server procurement project for the Bank of Guangzhou, with a bid valued at approximately $15.95 million.
Further cementing its new direction, CIMG also executed smaller agreements worth around $1.78 million for high-performance computing servers and GPUs from third-party suppliers, which include hardware from industry giant NVIDIA. The successful execution of these contracts transforms CIMG from a micro-cap company with minimal revenue into a significant player in the AI hardware and services space.
This strategic redirection marks a dramatic departure from CIMG's previous business model. Until recently, the company was primarily known as a manufacturer and supplier of single-serve pour-over coffee and tea, with operations in North America and Asia. The pivot towards technology appears to have been a deliberate strategy, underlined by the appointment of Wenlong Tong as company President in October 2025, who was tasked with leading and expanding the new computing power division.
In its press release, the company stated its intention to establish an "AI-driven service ecosystem." This strategy involves integrating the newly acquired computing capabilities with its other business segments, including digital health and intelligent marketing. One example cited is the development of its "LifeNode" AI-assisted wellness monitoring prototype, which will now be supported by the company's own powerful computing infrastructure.
The market's reaction reflects the scale of the financial transformation. The $124 million in contract value is nearly seven times the company's public market valuation and more than 330 times its trailing annual revenue. This provides the company with a substantial revenue backlog and a clear path to significant growth, assuming the successful fulfillment of the contracts.
While the series of agreements provides a massive boost to CIMG's top-line prospects, the company will face the significant operational challenge of scaling up to meet the demands of these large-scale contracts. This includes managing the logistics of hardware procurement and deployment and potentially raising further capital to fund its rapid expansion. Investors will be closely watching for details on the contract terms, delivery timelines, and margin profiles as the company begins its new chapter as an AI infrastructure provider.