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Hyperscale Data (GPUS)
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Hyperscale Data (GPUS) AI Stock Analysis

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GP

Hyperscale Data

(NYSE MKT:GPUS)

Rating:37Underperform
Price Target:
$1.00
▼(-9.09%Downside)
The overall stock score is heavily influenced by weak financial performance and bearish technical indicators. High leverage and negative earnings drive a low valuation score, with the absence of earnings call data and the exclusion of corporate events reinforcing the negative outlook.

Hyperscale Data (GPUS) vs. SPDR S&P 500 ETF (SPY)

Hyperscale Data Business Overview & Revenue Model

Company DescriptionHyperscale Data, Inc., through its subsidiaries, provides customized solutions for the military markets in North America, Europe, the Middle East, and internationally. It operates through eight segments: Energy and Infrastructure, Technology and Finance, SMC, Sentinum, GIGA, TurnOnGreen, ROI, and Ault Disruptive. The company offers lifting services; virtual markets, real world goods marketplaces, gaming, sweepstakes gaming, contest of skill, and building private spaces, as well as socialization and connectivity and real and virtual concerts. It also provides consumer electronic retail karaoke products; commercial loans, convertible notes, and revolving lines of credit; and digital currencies mining operations and colocation and hosting services, as well as operates data centers; and bitcoin mining and colocation and hosting services. In addition, the company engages in the design, development, manufacture, and sale of power conversion and system solutions for mission-critical applications and processes; designs, manufactures, and distributes electronics equipment, automated test solutions, power electronics, supply and distribution solutions, as well as radio, microwave and millimeter wave communication systems and components. The company sells its products directly and indirectly through its sales force, as well as through manufacturer representatives and distributors. It serves metaverse platform, crane services, oil exploration, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, and textiles industries. The company was formerly known as Ault Alliance, Inc. and changed its name to Hyperscale Data, Inc. in January 2023. Hyperscale Data, Inc. was incorporated in 1969 and is headquartered in Las Vegas, Nevada.
How the Company Makes MoneyHyperscale Data generates revenue primarily through a combination of subscription-based cloud services, hardware sales, and consulting services. The company's GPU cloud services allow businesses to rent high-performance computing power on a pay-as-you-go basis, providing a flexible and scalable solution for managing data workloads. Additionally, Hyperscale Data sells custom hardware solutions to enterprises requiring on-premise infrastructure, creating another significant revenue stream. Consulting and support services further contribute to earnings by offering expertise in optimizing data processing and enhancing system performance. Strategic partnerships with leading technology firms and data centers expand its market reach and drive additional revenue through joint product offerings and integrated solutions.

Hyperscale Data Financial Statement Overview

Summary
GPUS is experiencing significant financial difficulties, with negative revenue growth, losses across net profit and EBIT, and a high debt-to-equity ratio. The company's balance sheet shows limited equity, posing risks to financial stability.
Income Statement
30
Negative
Hyperscale Data has experienced significant revenue volatility, with a recent decline in revenue growth for the TTM period. The company continues to operate at a loss, as evidenced by negative net profit, EBIT, and EBITDA margins. The gross profit margin has decreased, further impacting profitability.
Balance Sheet
25
Negative
The company's leverage has increased, with a high debt-to-equity ratio and low equity levels. Return on equity is negative due to ongoing losses. The equity ratio is low, indicating limited buffer against liabilities, posing potential risks to financial stability.
Cash Flow
35
Negative
Free cash flow remains negative, though there is a slight improvement in operating cash flow. However, the operating cash flow to net income ratio remains unfavorable, highlighting challenges in cash generation relative to losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue103.93M106.66M156.44M117.64M52.40M23.87M
Gross Profit14.47M24.22M31.06M50.68M28.54M7.51M
EBITDA-39.23M-18.07M-173.14M-134.66M-17.58M-19.86M
Net Income-64.13M-56.20M-231.03M-181.82M-23.25M-29.41M
Balance Sheet
Total Assets218.55M220.77M299.19M561.51M490.29M75.64M
Cash, Cash Equivalents and Short-Term Investments24.06M25.35M12.05M17.03M59.13M21.24M
Total Debt120.32M120.30M61.14M91.39M100.41M9.46M
Total Liabilities211.76M218.68M240.29M337.53M145.11M26.51M
Stockholders Equity6.31M8.64M44.72M206.49M226.84M48.31M
Cash Flow
Free Cash Flow-19.98M-24.24M-14.09M-72.82M-213.66M-11.76M
Operating Cash Flow-13.15M-19.41M-5.43M26.49M-61.67M-11.18M
Investing Cash Flow3.75M3.19M-29.52M-158.64M-333.45M-7.78M
Financing Cash Flow17.52M25.85M37.04M124.11M397.94M37.28M

Hyperscale Data Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.10
Price Trends
50DMA
3.71
Negative
100DMA
3.11
Negative
200DMA
4.50
Negative
Market Momentum
MACD
-0.64
Negative
RSI
28.27
Positive
STOCH
10.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GPUS, the sentiment is Negative. The current price of 1.1 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 3.71, and below the 200-day MA of 4.50, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 28.27 is Positive, neither overbought nor oversold. The STOCH value of 10.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GPUS.

Hyperscale Data Risk Analysis

Hyperscale Data disclosed 128 risk factors in its most recent earnings report. Hyperscale Data reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hyperscale Data Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PLPL
68
Neutral
$1.95B-22.54%9.52%24.27%
65
Neutral
$10.86B15.345.28%1.92%3.13%-27.85%
50
Neutral
$742.88M-42.87%102.32%13.67%
47
Neutral
$32.22M-109.05%-18.70%84.35%
40
Underperform
$8.35M688.16%-46.28%93.33%
37
Underperform
$17.69M-203.32%-41.22%99.86%
25
Underperform
$480.49M115.25%23.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GPUS
Hyperscale Data
1.10
-9.26
-89.38%
MNTS
Momentus
1.26
-6.59
-83.95%
EVTL
Vertical Aerospace
6.45
-1.99
-23.58%
SKYH
Sky Harbour Group
10.13
0.75
8.00%
PL
Planet Labs PBC
6.63
4.49
209.81%
SIDU
Sidus Space, Inc. Class A
2.05
-0.56
-21.46%

Hyperscale Data Corporate Events

DividendsBusiness Operations and Strategy
Hyperscale Data Announces Dividends for Preferred Stock
Positive
Jul 16, 2025

Between July 10 and July 15, 2025, Hyperscale Data, Inc. issued a total of 2,525,000 shares of Class A Common Stock through various conversions and exemptions under the Securities Act of 1933. Additionally, on July 16, 2025, the company announced cash dividends for its Series D and Series E Cumulative Redeemable Perpetual Preferred Stock, with record and payment dates set for July 31 and August 11, 2025, respectively. These actions reflect the company’s ongoing financial maneuvers and strategic focus on shareholder returns, potentially impacting its market positioning and stakeholder interests.

Private Placements and Financing
Hyperscale Data Converts Note to Issue New Shares
Neutral
Jul 10, 2025

Between July 2, 2025, and July 8, 2025, Hyperscale Data, Inc. issued a total of 1,117,133 shares of Class A Common Stock through the conversion of Series B Convertible Preferred Stock and an additional 183 shares from Class B Common Stock. On July 9, 2025, the company further issued 427,565 shares of Class A Common Stock by converting an outstanding note, bringing the total outstanding shares to 16,689,864. These transactions were conducted under exemptions from registration requirements, potentially impacting the company’s stock liquidity and shareholder structure.

Private Placements and FinancingRegulatory Filings and Compliance
Hyperscale Data Converts Notes to Class A Shares
Neutral
Jul 1, 2025

Hyperscale Data, Inc. issued a total of 8,533,626 shares of Class A Common Stock between June 23, 2025, and July 1, 2025. This issuance was a result of converting outstanding convertible notes and preferred stock, leveraging exemptions from registration requirements under the Securities Act of 1933. As of July 1, 2025, the company had 15,144,926 shares of Class A Common Stock outstanding.

Private Placements and FinancingRegulatory Filings and Compliance
Hyperscale Data Issues Shares Following Stock Conversion
Neutral
Jun 20, 2025

Between June 16 and June 20, 2025, Hyperscale Data, Inc. issued a total of 1,401,422 shares of Class A Common Stock following the conversion of 2,016.07 shares of Series B Convertible Preferred Stock. Additionally, the company issued 1,811,216 shares of Class A Common Stock upon converting $2,996,479 of outstanding convertible notes. These transactions were conducted under exemptions from registration requirements of the Securities Act of 1933. As of June 20, 2025, the company had 6,611,290 shares of Class A Common Stock outstanding.

M&A TransactionsDividendsBusiness Operations and Strategy
Hyperscale Data Announces Dividends for Preferred Stock
Positive
Jun 18, 2025

On June 18, 2025, Hyperscale Data announced cash dividends for its Series D and Series E Cumulative Redeemable Perpetual Preferred Stock, with record dates set for June 30, 2025, and payment on July 10, 2025. This announcement underscores Hyperscale Data’s commitment to providing returns to its investors while it transitions to focus on high-performance computing services, following the planned divestiture of Ault Capital Group by the end of 2025.

Executive/Board ChangesM&A TransactionsBusiness Operations and Strategy
Hyperscale Data Chairman Resigns Amid Strategic Shift
Neutral
Jun 17, 2025

On June 16, 2025, Milton C. Ault, III, Executive Chairman of Hyperscale Data, announced his resignation upon the planned divestiture of the company’s subsidiary, Ault Capital Group, expected by December 31, 2025. This leadership change supports Hyperscale’s strategic shift towards becoming a pure-play AI infrastructure company, with CEO William Horne set to assume the role of Chairman to guide the company’s focus on AI-centric data centers, enhancing its market positioning and potential value for stakeholders.

Private Placements and Financing
Hyperscale Data Issues 205,000 New Class A Shares
Neutral
Jun 13, 2025

Between June 5 and June 12, 2025, Hyperscale Data, Inc. issued a total of 205,000 shares of Class A Common Stock through the conversion of Series B Convertible Preferred Stock and Class B Common Stock. Additionally, 145,000 shares were issued upon conversion of an outstanding convertible note. These transactions were conducted under exemptions from registration requirements of the Securities Act of 1933. As of June 12, 2025, the company had 3,151,372 shares of Class A Common Stock outstanding.

Business Operations and Strategy
Hyperscale Data Boosts Bitcoin Mining with New Agreement
Positive
Jun 10, 2025

On June 9, 2025, Sentinum, a subsidiary of Hyperscale Data, entered into a Hosting Services Agreement with a data center hosting company to support its Bitcoin mining operations. The agreement includes access to 20 megawatts of energy capacity and allows for energy curtailment during high demand periods, with profits from energy sales split between Sentinum and the service provider. This move is expected to enhance Sentinum’s Bitcoin mining capabilities and capitalize on the rising price of Bitcoin, reflecting positively on Hyperscale Data’s operational strategy and market positioning.

Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Hyperscale Data Settles Gresham Bankruptcy Agreement
Positive
Jun 9, 2025

On June 6, 2025, Hyperscale Data, Inc. entered into a settlement agreement with its defense affiliate Gresham Worldwide, Inc. and Gresham’s senior secured lenders as part of Gresham’s Chapter 11 bankruptcy proceedings. Subject to court approval, Gresham is expected to emerge from bankruptcy as a subsidiary of Hyperscale Data by October 1, 2025. This development is projected to add approximately $40 million in annualized revenue to Hyperscale Data, prompting the company to update its 2025 revenue guidance to $125–$135 million. The reconsolidation of Gresham Worldwide is anticipated to significantly enhance Hyperscale Data’s financial performance and operational momentum.

Private Placements and FinancingFinancial Disclosures
Hyperscale Data Issues Shares After Stock Conversion
Neutral
Jun 4, 2025

On February 25, 2025, Hyperscale Data, Inc. entered into an amended forbearance agreement with an institutional investor, issuing a $3.5 million convertible promissory note that matured on May 15, 2025. The maturity date was later extended to June 30, 2025. Additionally, between May 22 and June 3, 2025, the company issued 573,416 shares of Class A Common Stock upon conversion of Series B Convertible Preferred Stock, resulting in a total of 2,801,001 shares of Class A Common Stock outstanding as of June 3, 2025.

Dividends
Hyperscale Data Announces Cash Dividends for Preferred Stock
Positive
May 20, 2025

On May 20, 2025, Hyperscale Data announced cash dividends for its Series D and Series E Preferred Stock, with payment scheduled for June 10, 2025. The Series E dividend includes a previously deferred payment, underscoring the company’s commitment to consistent dividends and demonstrating its creditworthiness.

Shareholder MeetingsBusiness Operations and Strategy
Hyperscale Data Approves Stock Conversion at Special Meeting
Positive
May 19, 2025

On May 19, 2025, Hyperscale Data, Inc. held a Special Meeting of Stockholders where seven proposals were approved, all related to the conversion of preferred stock and various notes into Class A Common Stock. This strategic move aims to streamline the company’s capital structure and potentially enhance its market position by increasing the liquidity of its shares, which could have significant implications for its stakeholders.

Executive/Board Changes
Hyperscale Data Approves Executive Salary Increases
Neutral
May 2, 2025

On April 30, 2025, Hyperscale Data, Inc. announced that its Board of Directors approved salary increases for its top executives. Effective May 1, 2025, CEO William B. Horne’s salary was raised to $500,000, while President and General Counsel Henry C.W. Nisser’s salary was increased to $400,000.

Dividends
Hyperscale Data Announces Series D and E Dividends
Neutral
Apr 17, 2025

On April 17, 2025, Hyperscale Data, Inc. announced cash dividends for its Series D and Series E Preferred Stocks, with payment scheduled for May 12, 2025. The company also deferred the monthly cash dividend for the Series E Preferred Stock for April 2025, as allowed by its certificate of designations, impacting future dividend accruals.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025