Digi Power X Targets $250-$300 Million Revenue for Fiscal 2027
The company said, "For fiscal 2027, Digi Power X is targeting total revenue of approximately $250-$300 million across its three operating segments: AI colocation revenue from the Colocation Agreement is expected to contribute approximately $80-$100 million, reflecting a full year of Phase 1 operations and a partial year of Phase 2 following its targeted commissioning, and the Company is targeting an aggregate of 90 MW of AI colocation for fiscal 2027 for aggregate colocation revenues of up to $200 million; GPU-as-a-Service revenue through NeoCloudz is expected to scale over the course of the year to approximately 10 MW, as additional GPU capacity is deployed and contracted, with the Company targeting a year-end annualized run rate of up to $100 million, noting that recognized segment revenue will depend on the timing of capacity deployment and customer offtake; Energy sales are anticipated to be comparable to current levels and are expected to contribute approximately $12 million."
Trade with 70% Backtested Accuracy
Analyst Views on DGXX
About DGXX
About the author

- Successful Financial Transformation: Digi Power X achieved a positive adjusted EBITDA of $1.1 million in Q1 2026, a significant improvement from a negative $1.3 million last year, indicating a strong financial turnaround that boosts investor confidence during the company's transition.
- Significant Revenue Growth: The company reported revenues of $6.8 million for the first quarter, reflecting a successful shift from traditional cryptocurrency mining to AI computing and colocation revenues, which is expected to lay the groundwork for sustained future growth.
- Strong Balance Sheet: As of May 15, 2026, Digi Power X held approximately $125 million in cash and cash equivalents and about $15 million in digital assets, demonstrating robust capital investments, particularly in GPU equipment and data center buildout in Alabama.
- Future Growth Potential: The company targets Phase 1 service readiness by December 2026 and anticipates a total power capacity of 40 megawatts by Q1 2027, with expected monthly revenues of $8 million to $9 million, showcasing strong market expansion potential.
- Financial Decline: Digi Power X reported a Q1 net loss of $4.7 million, significantly worsening from a $1.6 million loss in Q1 2025, indicating challenges in revenue generation and cost management.
- Revenue Drop: The company’s Q1 revenue of $6.8 million represents a 26.9% year-over-year decline, missing expectations by $4.33 million, reflecting weakened market demand and intensified competition impacting performance.
- Adjusted EBITDA Improvement: Despite the larger overall loss, adjusted EBITDA improved to $1.1 million, a $2.4 million increase from a negative $1.3 million in Q1 2025, suggesting enhanced operational efficiency.
- Optimistic 2027 Outlook: Digi Power X targets total revenue of $250-$300 million for fiscal 2027, exceeding the consensus of $200.07 million, driven by growth in AI colocation and GPU-as-a-Service segments, which could provide strong momentum for future development.
- 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.
- 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.
- 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.
- 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.









