DGXX Stock Forecast & Price Target

Digi Power X Inc is projected to achieve FY25 sales of $34.8 million, slightly higher than previous estimates, driven by the deployment of new data center pods. The company has a credible path to significantly expand its critical IT load capacity by the end of FY26, which may position it favorably within the high-performance computing (HPC) market and attract higher valuation multiples from investors. Despite a downward revision for FY26 sales to $33.2 million, the firm has adjusted its price target upward to $5.00, reflecting confidence in long-term contracts and strategic partnerships that could enhance revenue stability and growth.

Digi Power X Inc has reported a notable decline in revenue, with 2Q25 earnings of $8.1 million reflecting a 13% decrease from the previous quarter, driven primarily by a 35% drop in energy sales. Anticipated full-year 2026 sales have been revised downwards to $33.2 million due to a conservative deployment schedule and a current lack of customer demand, suggesting challenges in scaling its infrastructure projects. Additionally, the company's foray into the GPU-as-a-service initiative presents significant growth risks due to historical volatility and high customer-turnover rates within the capital-intensive cloud service sector, further exacerbated by strong competition from major players like AWS and Azure.