Digi Power X Secures $2.5 Billion Deal with Cerebras
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 05 2026
0mins
Should l Buy DGXX?
Source: stocktwits
Digi Power X Inc's stock fell 8.16% as it crossed below the 5-day SMA, reflecting investor caution ahead of its upcoming earnings report.
The company is set to announce its Q1 2023 earnings on May 15, with a consensus EPS estimate of -$0.05, indicating potential profitability challenges. However, Digi Power X has secured a significant colocation deal with Cerebras worth up to $2.5 billion, which includes an initial 10-year contract valued at approximately $1.1 billion. This deal enhances Digi Power X's market position amid rising demand for AI infrastructure, potentially offsetting concerns about its earnings performance.
The implications of this deal could be substantial, as it not only boosts Digi Power X's revenue prospects but also positions the company favorably in the growing AI sector. Investors will be closely watching the earnings announcement to gauge the overall financial health and future growth potential of Digi Power X.
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Analyst Views on DGXX
Wall Street analysts forecast DGXX stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 7.220
Low
5.00
Averages
6.00
High
7.00
Current: 7.220
Low
5.00
Averages
6.00
High
7.00
About DGXX
Digi Power X Inc. is a vertically integrated artificial intelligence (AI) and energy infrastructure company. The Company designs and deploys modular tier three data centers through its AI-Ready Modular Solution (ARMS) platform and offers enterprise-grade GPU compute through its NeoCloud portal, leveraging advanced NVIDIA GPU technology and secured energy infrastructure. Through its subsidiary, US Data Centers, Inc. (US Data Centers), it is focused on creating a platform dedicated entirely to delivering artificial intelligence (AI) and HPC solutions, ensuring purpose-built infrastructure for computing. Its segments include cryptocurrency mining, sales of energy and electricity and colocation services. With multiple sites, including its combined cycle and high-capacity substations, the Company enhances the energy grid, supporting both industrial clients and broader energy markets. It operates Bitcoin mining sites and focuses on procuring power from renewable energy sources.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Digi Power X to Announce Q1 Earnings on May 15
- Earnings Announcement: Digi Power X is set to announce its Q1 2023 earnings results on May 15 before market open, with stakeholders keenly awaiting the performance metrics to gauge the company's future prospects.
- Market Expectations: The consensus EPS estimate stands at -$0.05, indicating challenges in profitability, while the revenue estimate of $11.13 million reflects a cautious outlook on sales growth from the market.
- Uplisting Plans: Digi Power X is planning to uplist to Cboe Canada, which, if successful, could enhance its market visibility and liquidity, thereby attracting more investor interest.
- Historical Financial Data: The historical earnings data will provide investors with crucial context, aiding in the assessment of Digi Power X's financial health and future growth potential.
See More
Digi Power X Q1 Revenue Falls Sharply Below Estimates
- Revenue Miss: Digi Power X reported Q1 revenue of $6.8 million, a 27% decline from Wall Street's estimate of $11.1 million, indicating challenges during the company's transition that may impact future investor confidence.
- Strong Financial Position: Despite the revenue miss, management highlighted the strongest balance sheet in the company's history, with approximately $125 million in cash and zero long-term debt, providing financial support for future data center development and reducing shareholder dilution risks.
- Optimistic 2027 Revenue Forecast: The company expects total revenue for fiscal 2027 to range from $250 million to $300 million, significantly above the consensus estimate of $201 million, showcasing growth potential in AI compute and colocation services.
- Bullish Market Sentiment: Despite the disappointing Q1 performance, retail sentiment on Stocktwits remains 'extremely bullish', with many viewing the current stock price as an 'entry point' and anticipating institutional investors to increase their holdings after seeing the positive guidance.
See More
DGXX Partners with Cerebras in $2.5 Billion Deal
- Increased Market Attention: DGXX has seen a more than 25% increase in Stocktwits watchers over the past week, indicating strong investor interest in the company's prospects, particularly following its partnership with Cerebras, which could drive stock price growth.
- Major Deal Secured: Digi Power X has struck a deal worth up to $2.5 billion with Cerebras Systems to provide 40 megawatts of compute power for an AI data center in Alabama, with an initial 10-year contract valued at approximately $1.1 billion, showcasing the company's strategic positioning in the AI infrastructure sector.
- Optimistic Earnings Expectations: Wall Street anticipates DGXX will report first-quarter revenues of $11.13 million, reflecting a 20% increase from the same quarter in 2025, despite an expected loss per share of $0.05; the company remains financially healthy with significant cash reserves and no long-term debt.
- Extremely Bullish Market Sentiment: Although DGXX shares slid more than 3% in Friday's premarket trading, retail sentiment on Stocktwits remains extremely bullish, with predictions from users suggesting the stock could rise to $10 following the earnings release.
See More
Cerebras IPO Target Valuation Reaches $48.8 Billion
- IPO Price Range Increase: Cerebras plans to raise its IPO price range from $115-$125 to $150-$160, potentially generating up to $4.8 billion in capital, which elevates the company's market valuation to $48.8 billion, a significant increase from the $23 billion valuation established in February.
- Strong Market Demand: The number of shares offered by Cerebras has increased from 28 million to 30 million, reflecting robust investor interest in AI infrastructure and further solidifying its position against Nvidia in the AI chip market.
- Significant Financial Performance: Cerebras reported revenue of $270.3 million for the first nine months of 2025, a substantial increase from $75.2 million in the same period last year, despite posting a net loss of $56.4 million, highlighting the challenges faced amid rapid expansion.
- Strategic Partnership Agreements: Cerebras has signed multi-billion-dollar contracts with Digi Power X to provide 40 megawatts of computing power, enhancing its market position in AI data centers, while a $10 billion deal with OpenAI is driving technology integration and application.
See More
Cerebras IPO Demand Soars, Digi Power X Benefits
- Cerebras IPO Upsizing: Cerebras is set to go public on Nasdaq this Thursday, with its IPO price range raised from $115-$125 to $150-$160 per share, potentially raising about $4.8 billion, reflecting strong market demand and positioning it as the largest IPO of 2026.
- Digi Power X Deal Surge: Digi Power X has secured a colocation deal with Cerebras worth up to $2.5 billion to provide 40 megawatts of compute power, with an initial 10-year contract valued at approximately $1.1 billion, significantly enhancing its market position amid rising AI infrastructure needs.
- Retail Interest Spike: Shares of Digi Power X surged over 5% in overnight trading, with retail message volumes increasing by 258% and watchers up by 33%, indicating strong investor interest in its infrastructure deal, which could further drive stock price appreciation.
- ATM Program Expansion: Digi Power X has expanded its at-the-market equity program by $100 million, raising the total potential offering to $175 million, signaling confidence in future growth and potentially providing funding support for upcoming projects.
See More
Market Analysis: ASML and Steel Dynamics Performance
- ASML Stock Performance: ASML's stock has been on a continuous rise since its impressive quarterly results, with a $75 increase today, reflecting strong market confidence in its technological leadership despite concerns about a potential pullback.
- Steel Dynamics Recommendation: Steel Dynamics is viewed as an excellent company, with analysts strongly recommending buying its stock, indicating confidence in its future profitability and reflecting the stable demand and growth potential in the steel industry.
- Bloom Energy Investment Opportunity: Bloom Energy is highlighted as a non-combustible power investment choice, with analysts noting a surge in demand from data centers, underscoring its significance and growth potential in the renewable energy market.
- Amphenol Stock Pullback: Amphenol's stock has slightly decreased, which analysts see as a good buying opportunity, demonstrating market confidence in its long-term growth prospects, particularly amid ongoing demand in the connectors and sensors market.
See More
Digi Power X to Announce Q1 Earnings on May 15
- Earnings Announcement: Digi Power X is set to announce its Q1 2023 earnings results on May 15 before market open, with stakeholders keenly awaiting the performance metrics to gauge the company's future prospects.
- Market Expectations: The consensus EPS estimate stands at -$0.05, indicating challenges in profitability, while the revenue estimate of $11.13 million reflects a cautious outlook on sales growth from the market.
- Uplisting Plans: Digi Power X is planning to uplist to Cboe Canada, which, if successful, could enhance its market visibility and liquidity, thereby attracting more investor interest.
- Historical Financial Data: The historical earnings data will provide investors with crucial context, aiding in the assessment of Digi Power X's financial health and future growth potential.
See More
Digi Power X Q1 Revenue Falls Sharply Below Estimates
- Revenue Miss: Digi Power X reported Q1 revenue of $6.8 million, a 27% decline from Wall Street's estimate of $11.1 million, indicating challenges during the company's transition that may impact future investor confidence.
- Strong Financial Position: Despite the revenue miss, management highlighted the strongest balance sheet in the company's history, with approximately $125 million in cash and zero long-term debt, providing financial support for future data center development and reducing shareholder dilution risks.
- Optimistic 2027 Revenue Forecast: The company expects total revenue for fiscal 2027 to range from $250 million to $300 million, significantly above the consensus estimate of $201 million, showcasing growth potential in AI compute and colocation services.
- Bullish Market Sentiment: Despite the disappointing Q1 performance, retail sentiment on Stocktwits remains 'extremely bullish', with many viewing the current stock price as an 'entry point' and anticipating institutional investors to increase their holdings after seeing the positive guidance.
See More
DGXX Partners with Cerebras in $2.5 Billion Deal
- Increased Market Attention: DGXX has seen a more than 25% increase in Stocktwits watchers over the past week, indicating strong investor interest in the company's prospects, particularly following its partnership with Cerebras, which could drive stock price growth.
- Major Deal Secured: Digi Power X has struck a deal worth up to $2.5 billion with Cerebras Systems to provide 40 megawatts of compute power for an AI data center in Alabama, with an initial 10-year contract valued at approximately $1.1 billion, showcasing the company's strategic positioning in the AI infrastructure sector.
- Optimistic Earnings Expectations: Wall Street anticipates DGXX will report first-quarter revenues of $11.13 million, reflecting a 20% increase from the same quarter in 2025, despite an expected loss per share of $0.05; the company remains financially healthy with significant cash reserves and no long-term debt.
- Extremely Bullish Market Sentiment: Although DGXX shares slid more than 3% in Friday's premarket trading, retail sentiment on Stocktwits remains extremely bullish, with predictions from users suggesting the stock could rise to $10 following the earnings release.
See More
Cerebras IPO Target Valuation Reaches $48.8 Billion
- IPO Price Range Increase: Cerebras plans to raise its IPO price range from $115-$125 to $150-$160, potentially generating up to $4.8 billion in capital, which elevates the company's market valuation to $48.8 billion, a significant increase from the $23 billion valuation established in February.
- Strong Market Demand: The number of shares offered by Cerebras has increased from 28 million to 30 million, reflecting robust investor interest in AI infrastructure and further solidifying its position against Nvidia in the AI chip market.
- Significant Financial Performance: Cerebras reported revenue of $270.3 million for the first nine months of 2025, a substantial increase from $75.2 million in the same period last year, despite posting a net loss of $56.4 million, highlighting the challenges faced amid rapid expansion.
- Strategic Partnership Agreements: Cerebras has signed multi-billion-dollar contracts with Digi Power X to provide 40 megawatts of computing power, enhancing its market position in AI data centers, while a $10 billion deal with OpenAI is driving technology integration and application.
See More
Cerebras IPO Demand Soars, Digi Power X Benefits
- Cerebras IPO Upsizing: Cerebras is set to go public on Nasdaq this Thursday, with its IPO price range raised from $115-$125 to $150-$160 per share, potentially raising about $4.8 billion, reflecting strong market demand and positioning it as the largest IPO of 2026.
- Digi Power X Deal Surge: Digi Power X has secured a colocation deal with Cerebras worth up to $2.5 billion to provide 40 megawatts of compute power, with an initial 10-year contract valued at approximately $1.1 billion, significantly enhancing its market position amid rising AI infrastructure needs.
- Retail Interest Spike: Shares of Digi Power X surged over 5% in overnight trading, with retail message volumes increasing by 258% and watchers up by 33%, indicating strong investor interest in its infrastructure deal, which could further drive stock price appreciation.
- ATM Program Expansion: Digi Power X has expanded its at-the-market equity program by $100 million, raising the total potential offering to $175 million, signaling confidence in future growth and potentially providing funding support for upcoming projects.
See More
Market Analysis: ASML and Steel Dynamics Performance
- ASML Stock Performance: ASML's stock has been on a continuous rise since its impressive quarterly results, with a $75 increase today, reflecting strong market confidence in its technological leadership despite concerns about a potential pullback.
- Steel Dynamics Recommendation: Steel Dynamics is viewed as an excellent company, with analysts strongly recommending buying its stock, indicating confidence in its future profitability and reflecting the stable demand and growth potential in the steel industry.
- Bloom Energy Investment Opportunity: Bloom Energy is highlighted as a non-combustible power investment choice, with analysts noting a surge in demand from data centers, underscoring its significance and growth potential in the renewable energy market.
- Amphenol Stock Pullback: Amphenol's stock has slightly decreased, which analysts see as a good buying opportunity, demonstrating market confidence in its long-term growth prospects, particularly amid ongoing demand in the connectors and sensors market.
See More
