DGX.NE stock surges 28.78% on $1.1B Cerebras AI data center deal

Digi Power X Inc. (DGX.NE) delivered a powerful performance on the NEO exchange today, with DGX.NE stock climbing 28.78% to close at C$6.98 in regular trading hours. The Miami-based energy infrastructure company announced a major milestone: a $1.1 billion Master Services Agreement with Cerebras Systems for a 40-megawatt AI data center colocation project. This deal marks a significant expansion into the booming artificial intelligence infrastructure sector. The stock’s strong momentum reflects investor confidence in the company’s ability to capitalize on growing demand for AI computing power. Trading volume surged to 129,921 shares, well above the 30-day average of 17,794, signaling broad market enthusiasm for the announcement.

What Drove DGX.NE Stock Higher Today

The catalyst behind today’s rally is crystal clear: Digi Power X announced a landmark partnership with Cerebras Systems for AI infrastructure services. The agreement represents a $1.1 billion revenue opportunity over the contract term, positioning DGX.NE as a key player in the AI data center space.

Strong Technical Setup

The stock’s technical picture shows aggressive momentum. The Relative Strength Index (RSI) sits at 84.57, indicating overbought conditions but reflecting genuine buying pressure. The Average True Range (ATR) of 0.55 shows elevated volatility, typical after major news. The ADX reading of 64.93 confirms a strong directional trend. These indicators suggest the market is pricing in real growth expectations, not just speculation.

Market Sentiment and Trading Activity

Today’s trading revealed significant institutional and retail interest in DGX.NE stock. Volume reached 129,921 shares, representing a 630% increase over the 30-day average. This surge indicates broad-based conviction about the Cerebras deal’s strategic importance.

Trading Activity

The stock opened at C$7.14 and traded between a day low of C$5.92 and day high of C$7.7, capturing the full range of investor sentiment. The previous close of C$5.42 means today’s move represents a 28.78% single-day gain. This level of volume and price action suggests the market is repricing DGX.NE’s growth trajectory.

Liquidation Dynamics

With the stock now at 52-week highs of C$7.7, some profit-taking may emerge. However, the strong fundamentals of the Cerebras deal should provide support. Track DGX.NE on Meyka for real-time updates on institutional accumulation patterns and potential resistance levels.

Financial Metrics and Valuation Context

Despite today’s rally, DGX.NE stock trades at a price-to-sales ratio of 10.19, reflecting premium valuation expectations. The company carries a market cap of C$489.6 million with 70.4 million shares outstanding. Current metrics show the market is pricing in significant future profitability from the Cerebras contract.

Growth Trajectory

The company’s 50-day moving average of C$3.72 and 200-day moving average of C$3.70 show DGX.NE has nearly doubled from its baseline. Year-to-date performance stands at +112.80%, demonstrating consistent upward momentum. The year-low of C$2.61 to year-high of C$7.7 represents a 195% range, capturing the stock’s transformation from a struggling miner to an AI infrastructure player.

Profitability Watch

The company currently shows negative earnings with an EPS of -C$0.88 and a PE ratio of -7.9, typical for growth-stage infrastructure companies investing heavily in capacity. The Cerebras deal should drive a path to profitability as revenue scales.

What’s Next for DGX.NE Stock

Investors should monitor several key developments ahead. The company reports earnings on May 14, 2026, which could provide guidance on Cerebras contract implementation timelines and cash flow expectations. Meyka AI rates DGX.NE with a grade of B, suggesting a HOLD recommendation with a score of 60.59 out of 100. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. These grades are not guaranteed and we are not financial advisors.

Execution Risk

The Cerebras deal’s success depends on timely deployment of the 40-megawatt facility and stable power supply. DGX.NE operates in the Utilities sector as an Independent Power Producer, giving it infrastructure advantages. However, the company must manage capital expenditures carefully while scaling operations. The current ratio of 0.66 indicates tight working capital, requiring disciplined cash management during the build-out phase.

Final Thoughts

DGX.NE’s 28.78% surge reflects strong market confidence in its AI infrastructure pivot, supported by the $1.1 billion Cerebras Systems deal. While the long-term AI data center opportunity is compelling, investors should note the company remains unprofitable with elevated valuations and overbought technical conditions. The May 14 earnings call will be crucial for validating execution capability. Long-term investors may find value in the sector tailwinds, but near-term traders should watch for consolidation and profit-taking.

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Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.