Cantor Fitzgerald projects a $500 million data center lease will trigger a sharp revenue inflection for DUOT by Q1 next year, driving the stock toward its best single-day gain in 20 months.
Shares of Duos Technologies Inc. (DUOT) were headed for their best single-day gains in approximately 20 months during Tuesday morning’s trade, extending a rally that began on Monday after the company secured a $500 million data center lease. At the time of writing, DUOT was among the top trending tickers on Stocktwits, with shares up nearly 21%.
On Monday, Duos announced five-year hosting agreements with Axe Compute Inc. (AGPU) to provide 55 megawatts of AI data center capacity across multiple U.S. sites. Cantor Fitzgerald noted that this new lease lifts Duos’ total contracted capacity to 75 MW. Initial project readiness is targeted to begin in late 2026 and continue into early 2027, subject to ongoing construction, commissioning, and performance testing.
Following the announcement, analysts at Cantor Fitzgerald raised their price target on Duos to $27 from $26 while maintaining an ‘Overweight’ rating, implying an upside potential of approximately 118% from current levels. Cantor stated that the newly secured lease should drive a “sharp” inflection in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) for Duos by the first quarter (Q1) of 2027. According to Koyfin data, the average 12-month price target for Duos shares stands at $24.5, implying roughly 97% upside. Both of the two analysts currently covering the stock rate it ‘Buy.’
Duos also reported its second-quarter (Q2) results on Monday, posting earnings per share (EPS) of $1.35 and revenue of $6.18 million. These figures beat Wall Street expectations of $0.66 EPS on $4.9 million in revenue, according to Fiscal.ai data.
“In the second quarter and over the last several weeks, we have made tremendous progress both in operational execution and the fundamental repositioning of our business as a standalone AI infrastructure provider,” CEO Doug Recker said. He added that the company began seeing the early stages of the performance ramp it expects to build throughout the year. Additionally, Duos secured $111 million in contracted revenue during Q2 with an investment-grade hyperscaler to provide 10 MW of critical IT load capacity for five years at its Columbus, Georgia, data center campus.
Regarding the Axe Compute partnership, the companies signed non-binding term sheets that contemplate potential minority investments by Axe Compute in the project entities, with Duos expected to retain majority ownership. Axe Compute provides dedicated GPU capacity to enterprises and AI companies through its Axe Compute Access and Axe Compute Build offerings. Recker noted that the agreements “represent an important advancement of our AI infrastructure strategy” and demonstrate the company’s ability to turn development opportunities into long-term commercial relationships.
Retail sentiment around Duos on Stocktwits trended in the ‘extremely bullish’ territory, with message volumes reaching ‘extremely high’ levels. Over the longer term, DUOT stock is up 11% year-to-date and 98% over the past 12 months. For context, the Themes Generative Artificial Intelligence ETF (WISE) is down 8% over the same 12-month period, while the iShares Micro-Cap ETF (IWC) is up 44%.