Citi says surging GPU demand, price hikes to buoy chip unit of Australia's Megaport

Megaport

12/04/2026 20:12

** Citi says surge in GPU rental demand, sold-out GPUs, and increasing prices suggest upside risks for Latitude, software firm Megaport's MP1.AX computer infrastructure unit

** Brokerage suggests upside risks to Latitude's Annual Recurring Revenue (ARR) and FY27 revenue forecasts

** However, Citi's analysis of hiring activity across Megaport and Latitude does not point to step-up in second-half hiring, although it still sees Megaport's job listings at an elevated level

** Brokerage retains "Buy" rating with A$14.65 price target, compares with 13 analysts' "Buy" rating on avg, with median PT A$15.33, as per LSEG-compiled data

** MP1 shares down 44.9% YTD

($1 = 1.4164 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Edmund Klamann)

 ((Nichiket.Sunil@thomsonreuters.com))