DGXX Stock Forecast & Price Target

Digi Power X Inc. has adjusted its FY25 sales estimate upwards to $34.8 million, driven by the anticipated deployment of one or two data center pods, which aligns with the company's strategy to enhance power infrastructure and promote sustainable energy. The potential conversion of a robust pipeline into long-term contracts may position the company to offer 40MW of critical IT load by the end of FY26, suggesting a positive trajectory in revenue growth and investor interest related to high-performance computing (HPC). Furthermore, despite a slight reduction in the FY26 sales projection to $33.2 million, the increased price target of $5.00—which reflects a valuation that remains competitive relative to peers—indicates a strong belief in Digi Power X's future earnings potential.

Digi Power X Inc. has experienced a significant decline in key revenue metrics, with total revenue dropping to $8.1 million in 2Q25, representing a 13% decrease from the previous quarter, primarily due to a 35% sequential decline in energy sales. The company has revised its FY26 sales estimate downward to $33.2 million from $47.2 million, reflecting a cautious outlook influenced by a slow deployment schedule and a lack of customer growth. Furthermore, the absence of further investments in the mining business and limited revenue contributions from its GPU-as-a-service initiative raise substantial concerns about future growth in a highly competitive market characterized by high capital intensity and customer turnover risks.