Gorilla Is Still Down 16% in 2026: Did GRRR Stock Just Find a Bottom?

A planned first U.S. data center gives Gorilla Technology Group (NASDAQ:GRRR) a new argument that its artificial intelligence (AI) infrastructure expansion can grow beyond Egypt, Taiwan and Thailand. Gorilla stock is up 9% this session to $9.21, a bounce that still leaves Gorilla shares down 16% year to date (YTD).

Smaller AI security names have taken most of this year’s losses, while larger AI software companies and data center infrastructure have held up well. Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) stock is up 12% YTD to $199.32, while BigBear.ai Holdings (NYSE:BBAI) stock is down 56% YTD to $2.35.

Data center assets, the area Gorilla is moving into, have been one of 2026’s stronger corners of the market. One fund that tracks that space, the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR), is up 24% YTD. For a wider benchmark, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 13% YTD.

Gorilla Targets Its First U.S. Data Center

Earlier this month, Gorilla signed a non-binding letter of intent to acquire its first data center in the United States, and it didn’t disclose financial terms. Management said the site’s power can be expanded well beyond its current utility capacity, and it’s planning to complete the deal by the end of November. Due diligence covers the tenant base, lease terms and operating history, according to Gorilla.

Gorilla built its business selling AI video analytics and smart-city security systems, and the data center push has already changed its results. Revenue at Gorilla in the first half of 2026 nearly doubled to $78.36 million from $39.33 million, and Q2 2026 revenue rose 138% year over year. In August, CEO Jay Chandan described the results as “the clearest evidence yet that Gorilla has entered a different phase of scale.”

Gorilla Carries Heavier Stakes Than Its AI Software Peers

Gorilla is building physical data center capacity. Unlike Palantir and BigBear.ai, which sell software, the model comes with $228 million in committed equipment purchases on top of its security systems business. That mix ties Gorilla’s results to hardware deliveries, power readiness and customer onboarding, the main execution risks management flagged on its August call.

Gorilla’s operating record supports both readings. First-half operating loss at Gorilla grew under IFRS (International Financial Reporting Standards) to $47.18 million, including $25.43 million of stock-based compensation. Management still raised the Q3 2026 revenue plan to $48 million to $50 million from $36 million to $40 million.

The argument for a bottom depends on the current rebound, a U.S. foothold that could grew Gorilla’s customer base and a 2027 revenue target of $450 million to $500 million. Chandan set the standard on the August 31 earnings call, stating: “I’m asking all of you to judge us by the contracts we’ve signed, equipment we’ve delivered, revenue we’re recognizing and cash we’re collecting.” New positions from Point72 Asset Management, Two Sigma Investments and Balyasny Asset Management showed up in Gorilla’s shareholder base as of June 30.

Skeptics point out that Gorilla’s letter of intent is non-binding, its terms are undisclosed and the acquisition isn’t complete. Three customers each made up more than 10% of Gorilla’s first-half revenue, and after the period the company issued an additional $125 million in 7.5% convertible notes due 2031. Currency swings in the Egyptian pound add risk, since Gorilla’s Egypt government contract makes up a significant portion of its backlog.

Gorilla’s Data Center Deal Versus Its YTD Decline

Gorilla’s Yotta partnership offers a second measuring stick. The company has called it a potential base for more than $500 million in annualized revenue, beyond the U.S. deal. Until that capacity produces revenue, the YTD decline in Gorilla shares may keep weighing on sentiment.

Investors considering their exposure should keep their Gorilla stock holdings modest given the non-binding deal, customer concentration and convertible debt. Traders might choose to add GRRR shares only as contracts close and cash collections show up.

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