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Multibagger stock E2E Networks surged a whopping 20% in intraday deals on Wednesday, February 18, after tech giant Nvidia announced it is collaborating with next-generation cloud providers, including E2E, to meet India's growing need for AI compute.

E2E Networks, an Indian cloud company that provides on-demand computing power, including GPU and AI infrastructure, saw its shares jump as much as 20% to the upper price of ₹3,034.40 on the NSE. Today's rise has driven the small-cap stock 43% higher in February so far and 52% on a year-to-date basis.

E2E Networks has emerged as a multibagger stock, amid a massive 1760% rise in three years and 6,455% in five years. Since 2020, the stock has been caught in an uptrend, barring last year when it lost 50.66% according to Trendlyne data.

India, with its deep base of developers, startups and partners, has become one of the most important hubs for AI innovation, said Nvidia managing director for South Asia, Vishal Dhupar.

Commenting on its collaboration with E2E Networks, Nvidia, in a blog post, stated that E2E Networks is building an Nvidia Blackwell GPU cluster on its TIR platform, hosted at the L&T Vyoma data centre in Chennai.

The TIR cloud compute platform will feature Nvidia HGX B200 systems and NVIDIA Enterprise software as well as Nvidia Nemotron open models to supercharge sovereign development across agentic AI, healthcare, finance, manufacturing and agriculture, the post stated.

Nvidia, the world's most-valuable company, continues to command an estimated 80%+ share of the global AI accelerator market, and access to its enterprise-grade GPUs materially enhances a cloud provider’s competitive positioning.

According to Harshal Dasani, Business Head at INVasset PMS, for E2E Networks, which operates in the domestic cloud and high-performance computing segment, the collaboration signals potential preferential access to advanced AI chips and ecosystem alignment.

India’s public cloud services market is projected to grow at a 20–25% CAGR over the next few years, with AI workloads emerging as one of the fastest-growing verticals. He believes that if E2E can scale GPU capacity meaningfully, it could position itself as a localised alternative to hyperscalers for startups and mid-sized enterprises seeking lower-latency AI infrastructure.

However, he cautioned that the investment thesis must account for balance sheet intensity and execution risk.

"E2E operates on a smaller revenue base compared to global cloud majors, which means incremental capex can stretch financial ratios if demand visibility weakens," he added.

During the third quarter of the ongoing fiscal year, E2E Networks posted a loss of ₹57 crore as against a profit of ₹155 crore a year ago, despite a 68% year-on-year growth in revenue, as high depreciation cost dented the bottomline.

The revenue for the quarter under review came in at ₹700 crore as against ₹416 crore a year-ago. Meanwhile, margins declined marginally to 56.6% from 59.1% YoY, while EBITDA overall saw a rise of 61% to ₹396 crore.

Another Indian tech company, Netweb Technologies, jumped 14% to ₹3531.70 after it announced its collaboration with Nvidia.

Further expanding access to Nvidia AI infrastructure in India, Netweb Technologies is launching its Tyrone Camarero AI Supercomputing systems built on Nvidia's Grace Blackwell architecture.

The NVIDIA GB200 NVL4 platforms — manufactured in India by Netweb under the government’s “Make in India” mission — feature four NVIDIA Blackwell GPUs and two NVIDIA Grace CPUs to power scientific computing, model training and inference.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions.Saloni Goel has nine years of experience as a business journalist and has extensively covered financial markets. At Mint, she has been part of the mar...

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