DGXX Stock Eyes Fifth Straight Gain After Landmark Cerebras AI Deal — Retail Touts Valuation Gap

• On Tuesday, the company announced a colocation AI data center deal with Cerebras Systems worth up to $2.5 billion. 
• CEO Michael Amar said the deal validates the company’s capabilities and positions it among top-tier data center operators. 
• On Stocktwits, retail sentiment around DGXX stock jumped from ‘bullish’ to ‘extremely bullish’ territory even as users discussed a potential valuation gap.

Shares of Digi Power X Inc. (DGXX) were up more than 8% in Wednesday’s premarket trading, headed for a fifth straight day of gains over optimism for its multi-billion-dollar deal with Cerebras Systems.

The stock closed up by over 29% on Tuesday after the deal announcement, in which Digi Power will provide Nvidia Corp. (NVDA) rival with up to 40 megawatts of compute power.

Despite the massive spike in share prices, retail users on Stocktwits discussed the stock’s significant undervaluation given its current market capitalization relative to the size of the deal.

AI Deal Fuels Momentum

Digi Power’s deal with Cerebras offers long-term revenue opportunities, clocking $1.1 billion over 10 years, with an option to expand by another $1.4 billion. CEO Michael Amar said the deal validates the company’s capabilities and positions it among top-tier data center operators.

Unlike many competitors, Digi Power X will build the facility on land it already owns.

The project will be rolled out in phases, with 15 MW of capacity expected by mid-December and the remaining 25 MW coming online by the end of the first quarter of next year, as per the company.

DGXX Stock: What’s Retail Saying?

On Stocktwits, retail sentiment around DGXX stock jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

One bullish user said that the company’s valuation “does not makes sense” when compared to its debt-free balance sheet and the new billion dollar contract.

Another bullish user said, “this should be much higher. Expect a run into next week and earnings.”

A third user said, “UNDERVALUED for sure!”

DGXX shares have rallied more than 267% in the last 12 months.

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