Shares of STAK Inc. surged 9.4% in pre-market to $4.43, extending a volatile rebound after the China-based oilfield equipment maker announced plans to form a U.S. subsidiary dedicated to powering AI data centers. The move raises a fundamental question: can a 47-employee company with $24.9 million in trailing revenue and negative earnings credibly enter one of the most capital-intensive races in tech?
An Oilfield Company Tries to Reinvent Itself Overnight
STAK, headquartered in Changzhou, China, specializes in manufacturing oilfield production and maintenance equipment. On June 8, it signed a memorandum of understanding — a non-binding statement of intent — to develop modular gas-to-electricity power generation systems for AI data centers across North America.
STAK will hold a 60% stake in the subsidiary and consolidate its financial results,
with planned incorporation in Delaware and operations based in Texas. This is not yet a binding deal: the formation remains subject to definitive agreements and customary closing conditions.
The Product Sounds Promising, But Permits and Scale Are Giant Hurdles
The subsidiary's core product is a containerized gas-powered generator producing up to 1.4 megawatts of electricity, designed for rapid deployment. That's a small footprint in a market where single AI data center campuses can demand hundreds of megawatts. STAK must first obtain EPA certifications and state-level environmental permits before any commercial rollout. No timeline has been disclosed.
The Financials Tell a Sobering Story
Over the trailing twelve months, STAK generated $24.9 million in revenue with a 30.9% gross margin, but posted an operating loss of $3.1 million and a net loss of $5.7 million.
Earnings on May 13 showed $19.2 million in revenue but weaker margins, triggering a roughly 63% stock drop.
In January 2026, the company raised just $2.3 million through a stock offering at $0.38 per share. Building power infrastructure requires serious capital that STAK currently does not have.
The Stock Price Reflects Hype, Not Fundamentals — Yet
STAK's 52-week range spans from $0.29 to $9.50 , illustrating extreme speculative swings. The stock has climbed roughly 26% in three sessions off its $3.52 low, entirely on sentiment around the AI subsidiary announcement. With no binding agreements, no regulatory approvals, and a loss-making core business, investors are pricing in a future that is far from guaranteed.