DGXX Stock Forecast & Price Target

Digi Power X Inc. is projected to achieve FY25 sales of $34.8 million, reflecting an increase from the previous estimate of $33.7 million, driven by the deployment of new energy pods. The company has a potential pathway to offer 40MW of critical IT load by the end of FY26, contingent upon successfully converting its pipeline into long-term contracts, which could enhance its valuation as investors consider future revenue growth. Despite a reduction in FY26 revenue estimates to $33.2 million, an increased price target from $2.50 to $5.00 underscores confidence in Digi's scalability and market positioning within the high-performance computing space.

Digi Power X Inc. has reported a declining revenue trend, with total revenues of $8.1 million in 2Q25, marking a 13% decrease from the previous quarter, primarily due to a significant 35% drop in energy sales. In the subsequent 3Q25 results, revenues further declined to $8.15 million, reflecting an ongoing downward trajectory and leading to a downward revision of FY26 sales estimates from $47.2 million to $33.2 million, highlighting a more conservative outlook based on a lack of customer demand. Additionally, the company faces challenges in its GPU-as-a-service initiative, which is capital-intensive with high customer turnover risks, compounded by intense competition from larger hyperscale providers.