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Hyperscale Data, Inc. (GPUS)
:GPUS
US Market

Hyperscale Data (GPUS) AI Stock Analysis

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GP

Hyperscale Data

(NYSE MKT:GPUS)

Rating:38Underperform
Price Target:
$1.50
▼(-11.24%Downside)
The stock score is primarily impacted by the company's poor financial performance and weak technical indicators. While there are positive corporate events, they are insufficient to outweigh the significant financial and technical challenges.

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
Hyperscale Data faces significant financial challenges with substantial net losses impacting profitability metrics like net profit margin and ROE. High leverage and negative cash flows indicate financial instability. The company needs strategic shifts to improve its financial standing.
Income Statement
32
Negative
The company experienced significant net losses over the years with a negative net profit margin. Revenue growth has been inconsistent, with a notable decrease in 2024 compared to 2023. The EBIT and EBITDA margins are also negative, indicating challenges in operating efficiency.
Balance Sheet
45
Neutral
The company has a high debt-to-equity ratio, reflecting high leverage, which poses financial risk. The return on equity is negative due to net losses. The equity ratio indicates a low proportion of equity financing, suggesting potential instability.
Cash Flow
40
Negative
The company has consistently negative free cash flow, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is not favorable, and the free cash flow growth has been negative, suggesting liquidity issues.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
106.66M156.44M117.64M52.40M23.87M
Gross Profit
24.22M31.06M50.68M28.54M7.51M
EBIT
-57.00M-153.72M-139.48M-18.36M-6.03M
EBITDA
-18.07M-173.14M-134.66M-17.58M-19.86M
Net Income Common Stockholders
-56.20M-231.03M-181.82M-23.25M-29.41M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.35M12.05M17.03M59.13M21.24M
Total Assets
220.77M299.19M561.51M490.29M75.64M
Total Debt
120.30M61.14M91.39M100.41M9.46M
Net Debt
115.75M52.51M83.45M84.50M-9.22M
Total Liabilities
218.68M240.29M337.53M145.11M26.51M
Stockholders Equity
8.64M44.72M206.49M226.84M48.31M
Cash FlowFree Cash Flow
-24.24M-14.09M-72.82M-213.66M-11.76M
Operating Cash Flow
-19.41M-5.43M26.49M-61.67M-11.18M
Investing Cash Flow
3.19M-29.52M-158.64M-333.45M-7.78M
Financing Cash Flow
25.85M37.04M124.11M397.94M37.28M

Hyperscale Data Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.69
Price Trends
50DMA
4.08
Negative
100DMA
3.57
Negative
200DMA
5.08
Negative
Market Momentum
MACD
-0.58
Positive
RSI
30.21
Neutral
STOCH
2.05
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 1.69 is below the 20-day moving average (MA) of 4.70, below the 50-day MA of 4.08, and below the 200-day MA of 5.08, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 30.21 is Neutral, neither overbought nor oversold. The STOCH value of 2.05 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
PLPL
68
Neutral
$1.55B-22.54%9.52%24.27%
66
Neutral
$4.46B12.115.38%5.02%4.17%-11.82%
42
Neutral
$28.01M-109.05%-18.70%84.35%
40
Neutral
$7.25M688.16%-46.28%93.33%
40
Underperform
$734.54M-42.87%102.32%13.67%
38
Underperform
$5.33M-203.32%-41.22%99.86%
25
Underperform
$477.16M115.25%23.26%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GPUS
Hyperscale Data
1.69
-8.99
-84.18%
MNTS
Momentus
1.37
-5.76
-80.79%
EVTL
Vertical Aerospace
5.89
-1.50
-20.30%
SKYH
Sky Harbour Group
9.77
0.50
5.39%
PL
Planet Labs PBC
5.11
3.26
176.22%
SIDU
Sidus Space, Inc. Class A
1.54
-0.93
-37.65%

Hyperscale Data Corporate Events

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.

Private Placements and Financing
Hyperscale Data Secures $50M Equity Financing Deal
Positive
Apr 1, 2025

On March 31, 2025, Hyperscale Data, Inc. entered into a Securities Purchase Agreement with SJC Lending LLC for up to $50 million in new equity financing. This capital will accelerate the development of a state-of-the-art data center in Michigan, designed to support enterprise, AI, and high-performance computing cloud providers. The transaction is structured through multiple closings, with the investor obligated to fund a minimum of $1 million monthly. This financing is seen as a strong endorsement of Hyperscale Data’s business model and will contribute to economic development and job creation in the local community.

DividendsBusiness Operations and Strategy
Hyperscale Data Announces Dividend Payments and Deferrals
Neutral
Mar 20, 2025

On March 20, 2025, Hyperscale Data, Inc. announced a cash dividend of $0.2708333 per share for holders of its Series D Preferred Stock and a $0.20833 per share dividend for Series E Preferred Stock, covering a previously deferred payment for February 2025. The record date for both dividends is March 31, 2025, with payment scheduled for April 10, 2025. The company also decided to defer the March 2025 dividend for Series E Preferred Stock, utilizing its option to defer up to 12 consecutive monthly payments without them being considered missed. This decision reflects the company’s strategic financial management and its impact on stakeholders, particularly those holding Series E Preferred Stock.

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.