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Investing.com - H.C. Wainwright has raised its price target on Digi Power X Inc (NASDAQ:DGXX) to $5.00 from $2.50 while maintaining a Buy rating, citing progress in the company’s high-performance computing (HPC) initiatives. The new target represents a 56% upside from the current price of $3.21, with analyst consensus maintaining a Strong Buy recommendation and targets ranging from $2.50 to $9.00.
Digi Power X reported third-quarter 2025 revenues of $8.15 million on Friday, representing an 11% decrease from $9.18 million in the second quarter. The company disclosed a liquidity position of $90 million with no debt, including $74 million in cash and $15 million in digital assets. InvestingPro data shows the company is quickly burning through cash with a negative free cash flow of $33.65 million over the last twelve months, though its current ratio of 4.57 indicates liquid assets exceed short-term obligations.
The company plans to energize its first 5MW HPC pod in January 2026 through its partnership with Supermicro, with deployment targets of 15MW by the second quarter of 2026, 45MW by the third quarter, and the full 55MW by the end of the fourth quarter of 2026. These deployments will primarily occur at the company’s Alabama property.
Digi Power X also introduced NeoCloudz, its GPU-as-a-service platform, which is scheduled to launch in January 2026. CEO Michele Amar described it as a consumer-friendly portal for on-demand GPU access targeting smaller users.
H.C. Wainwright analyst Kevin Dede noted that the company faces capital constraints for its proprietary ARMS 200 HPC-pod deployment, with industry estimates placing HPC development costs at approximately $10 million per MW, potentially totaling around $550 million for the Alabama location. According to InvestingPro, DGXX is currently trading near its Fair Value, with a weak financial health score of 1.55, reflecting its unprofitable status with a diluted EPS of -$0.33 and gross profit margins of just 4.22%. Despite these challenges, the stock has shown strong momentum with a 97% price return over the past six months.
In other recent news, H.C. Wainwright has reiterated its Buy rating on Digi Power X Inc, maintaining a price target of $2.50. This development comes as the company shifts its focus from bitcoin mining to AI infrastructure. Digi Power X’s Alabama data center, which previously supported bitcoin mining operations, is undergoing significant changes. The facility currently has a 22MW power infrastructure with plans to scale up to 50MW. The company is preparing the site to accommodate 15 pods, each consuming 1MW and equipped with 256 Nvidia chips housed in SuperMicro Computer systems. These updates indicate a strategic pivot for Digi Power X, as it repurposes its existing resources for AI-related activities. Investors will be watching closely to see how this transition impacts the company’s future performance.
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