DGXX Stock Forecast & Price Target

Digi Power X Inc. demonstrated an upward adjustment in its fiscal year 2025 sales estimate to $34.8 million, reflecting the anticipated deployment of one or two data pods, indicating a proactive expansion in their infrastructure capabilities. The company is positioned for substantial growth, with a credible pathway to achieving 40MW of critical IT load by the end of fiscal year 2026, particularly if it successfully converts its project pipeline into long-term contracts amidst strong AI demand. Additionally, the company remains undervalued relative to its peers in the cloud computing sector, as indicated by a market cap-to-sales multiple of 7x, which may attract investor interest and improve its market recognition as the transition to high-performance computing progresses.

Digi Power X Inc is experiencing a downward trend in its financial performance, with total revenues of $8.1 million in 2Q25, reflecting a 13% decline from the previous quarter, largely due to a 35% decrease in energy sales. Additionally, the company has revised its FY26 sales estimate down to $33.2 million from $47.2 million, attributing this to a more conservative deployment schedule and a lack of customer interest. The absence of further investments in its mining operations and the anticipated minimal contributions from the NeoCloudz GPU-as-a-Service initiative raise significant growth concerns, especially given the historical challenges associated with the GaaS segment.