Digi Power X’s Strategic Shift to High-Performance Computing Drives Buy Rating

H.C. Wainwright analyst Kevin Dede reiterated a Buy rating on Digi Power X (DGXX – Research Report) today and set a price target of $2.50.

Kevin Dede has given his Buy rating due to a combination of factors including Digi Power X’s strategic shift towards high-performance computing (HPC) rather than bitcoin mining. This transition is underscored by the company’s recent partnerships, such as the one with SuperMicro Computer for servers powered by Nvidia modules, which are integral to their AI-ready modular solution platform. The company’s focus on building and marketing high-performance compute infrastructure is seen as a promising direction, despite the challenges associated with such endeavors.
Moreover, Digi Power X’s substantial power capacity, with 100MW available to support HPC, positions it well in the market. Although there are uncertainties regarding the speed of deployment and customer relationships, the company’s efforts to establish itself as a preferred provider for modular, energy-backed AI infrastructure are noteworthy. The variability in sales estimates reflects the inherent volatility in the market, but the potential for future insights and partnerships supports the Buy rating and the $2.50 target price.