DGXX Stock Forecast & Price Target

Digi Power X Inc. has projected FY25 sales of $34.8 million, a modest increase from previous estimates, driven by the deployment of new data center pods. The company maintains a credible path towards offering 40MW of critical IT load by the end of FY26, which could lead to a favorable increase in valuation multiples, particularly with potential long-term contracts in the high-performance computing (HPC) segment. Additionally, Digi's collaboration with renowned partners to secure extensive multi-year contracts at competitive rates positions the company to capture significant revenue growth in the evolving energy infrastructure market.

Digi Power X Inc. has experienced a decline in revenues, with 2Q25 figures showing an 11% drop to $8.15 million from $9.18 million in the previous quarter, attributed mainly to a significant 35% sequential decrease in energy sales. The company's forecast for FY26 has been reduced to $33.2 million from $47.2 million due to a conservative deployment schedule and a current lack of customers, indicating challenges in revenue generation. Additionally, the absence of further investments in the mining sector, coupled with risks associated with the capital-intensive GPU-as-a-service market, diminishes growth expectations and raises concerns about sustainability in an increasingly competitive landscape.