Key Highlights

  • XMAX shares rose 5.24% pre-market to $4.22 after a new AI infrastructure agreement.
  • The five-year deal targets 512 NVIDIA Blackwell Ultra B300 GPUs in Korea.
  • XMax expects more than $100 million in cumulative Revenue over the next five years.

XMax (NASDAQ:XMAX) shares rose 5.24% to $4.22 in pre-market today, up $0.21 from the prior close of $4.01. The company announced a five-year AI infrastructure services agreement with DSH HYPER of Singapore. Under it, XMax will obtain dedicated high-performance computing services deployed in Korea on infrastructure provided by kt cloud. XMax's wholly owned subsidiary, XMax AI, is the designated operating end user.

XMax, formerly Nova LifeStyle, is based in Commerce, California. It designs, sources and distributes contemporary furniture under brands including Diamond Sofa and Nova Living. It has expanded into AI software and platform-based services through XMax AI and Elonx AI Holdings.

Cluster Targets 512 Blackwell Ultra GPUs

The planned AI cluster comprises 64 compute nodes, each with eight NVIDIA (NASDAQ:NVDA) Blackwell Ultra B300 GPUs, for a target of 512 GPUs, plus 560TB of high-performance parallel storage. XMax intends to use it mainly for high-throughput AI inference. Service began on October 29, 2026 with an initial configuration of 480 GPUs, and the full configuration is expected to follow in phases.

The five-year commitment is subject to closing conditions. These include approval by XMax's Board of Directors and delivery of a security guarantee and Standby Letter of Credit in favor of kt cloud by November 17, 2026. The material terms are disclosed in the Form 8-K filed on November 2, 2026.

NeoCloud and AI Token Factory Lead the Product Plan

XMax will first use the cluster to complete development of its first AI Token Factory, covering infrastructure integration, large-model inference optimization, model serving performance testing and commercial platform validation. NeoCloud is an AI-optimized cloud infrastructure service for enterprise AI workloads. AI Token Factory is an API-driven, distributed inference platform that sells committed compliant inference capacity.

The planned portfolio also includes Model-as-a-Service offerings and enterprise AI applications such as AI agents and retrieval-augmented generation. XMax plans to deliver these through APIs, a command-line interface and managed workspaces, with operations across the United States, Japan, Korea and Singapore.

Based on the planned deployment and expected commercialization progress, XMax expects the related businesses to generate more than $100 million in cumulative revenue over the next five years.

Financial Snapshot and Recent Trading

Fiscal 2025 net sales rose 73% to $16.7 million, while gross Margin fell to 25% from 44%. First-half 2026 revenue fell about 13% to $4.52 million, with an operating loss of $1.75 million. Reported profit came from an unrealized gain of about $42.9 million on a private fund. Earnings Per Share stand at negative $0.17.

The shares closed at $4.01 on Monday, down 37.54%. The 52-week range is $3.07 to $9.34. XMax has also agreed to acquire Hexa Creation.

Board Approval and the November 17 Deadline Are the Next Markers

The agreement sets out the compute capacity, GPU configuration and revenue expectation behind XMax's AI plans, with service already live at 480 GPUs. Commercialization depends on completing technical validation of the first AI Token Factory and meeting contractual, technical and regulatory requirements. The next items to follow are board approval, delivery of the security guarantee and standby letter of credit by November 17, and the platform launch.