To get some idea of the massive potential unleashed by the artificial intelligence revolution, you need look no further than ASX AI stock DXN Ltd (ASX: DXN).
If you're not familiar with DXN, the company manufactures and operates modular data centres.
And business is booming. Here's what I mean.
Image source: Getty Images
Tipping $5,000 into ASX AI stock DXN in March
Back in March, I hadn't yet heard of DXN. But I wish I had.
You see, on 24 March, DXN shares closed the day trading for 2 cents apiece.
So, for $5,000, I could have bought 250,000 shares in the ASX AI stock. I would then have watched the share price drop to 1.5 cents by market close on 13 April, cutting my initial $5,000 investment to just $3,500.
But if I'd held tight through those early losses, I would then have watched the stock go on an epic tear.
Indeed, in morning trade today, DXN shares are up another 4.6%, currently changing hands for 45.5 cents apiece.
Which means the 250,000 shares I bought six months ago for just $5,000 would be worth $113,750 today. Or a gain of 2,175%.
Boom!
What's been sending DXN shares to the moon?
Investors have been bidding up the ASX AI stock as DXN kicks off FY 2027 with growing demand for its modular models across AI infrastructure markets.
"FY26 will be remembered as the year DXN's long-term investment thesis came into focus," DXN managing director Shalini Lagrutta said following the release of the company's full-year results on 31 August.
Lagrutta added:
While revenue for the year was impacted by customer-side project deferrals, our maiden AI HPC contract validated years of investment behind our AI-ready modular platform and drove a five-fold increase in the company's market capitalisation.
We enter FY27 with our strongest-ever backlog currently sitting at $40.9 million as of 30 August 2026 and a rapidly maturing pipeline of identified projects, of which approximately 21% are AI infrastructure related.
Is the ASX AI stock still a good buy today?
Despite its 20-bagger status, Wilson Asset Management – which is a major shareholder in the ASX AI stock – is still adding to its position.
According to Wilson Asset Management portfolio manager Shaun Weick (quoted by the Australian Financial Review):
We think DXN has the potential to be a multi-bagger from here and is one of the best micro-cap opportunities on the ASX…
They have engineered a modular solution, which critically accelerates the rollout of AI factory capacity. They have been awarded multiple initial contracts which, if delivered successfully in coming months, unlocks gigawatt-scale projects which is a multi-billion-dollar revenue opportunity.
