DGXX Stock Forecast & Price Target

Digi Power X Inc. anticipates an increase in FY25 sales to $34.8 million, reflecting growth driven by the deployment of new infrastructure pods, thereby indicating positive growth momentum. The company's ability to secure long-term contracts and potentially reach 40 megawatts of critical IT load by FY26 positions it favorably within the high-performance computing (HPC) market. Despite a slight revenue adjustment for FY26, the company's valuation multiples remain attractive when compared to peers in the cloud computing sector, suggesting significant room for investor interest and recognition.

Digi Power X Inc has reported a consistent decline in revenue, with total revenues falling to $8.1 million in 2Q25, a 13% decrease from the previous quarter, primarily due to a significant 35% drop in energy sales. The company has lowered its fiscal year 2026 sales estimate to $33.2 million from $47.2 million, attributing this adjustment to a conservative deployment schedule and a notable lack of customer engagement. Furthermore, the absence of further investments in the mining business and anticipated revenue challenges from the NeoCloudz GPU-as-a-service initiative indicate limited growth prospects, compounded by high customer turnover risk within the competitive cloud services landscape.