Digi Power X: Accelerating Shift to AI and HPC Services Supports Buy Rating and $5 Target

Kevin Dede, an analyst from H.C. Wainwright, maintained the Buy rating on Digi Power X. The associated price target is $5.00.

Kevin Dede has given his Buy rating due to a combination of factors, primarily Digi Power X’s accelerating transition from legacy self-mining to higher-value HPC and AI-focused services. He highlights that the company’s ramp toward 90 MW of colocation and 10 MW of GPU-as-a-service capacity could, if fully utilized, support a materially higher revenue run-rate relative to current levels, reinforcing a favorable growth outlook.

In addition, he underscores the strategic importance of the newly signed, though non-binding, colocation LOI, expanding power capacity in key states, and the company’s entry into GPU-based cloud compute at rising market rental rates. While he notes potential financing hurdles to fully build out the 10 MW GPU target, he views Digi Power X’s strengthened power portfolio, growing AI allocation, and supportive pricing environment as sufficient to justify maintaining a Buy rating and a $5.00 price target.

Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DGXX in relation to earlier this year.