DigitalOcean (NYSE: DOCN) has reported a remarkable 150% increase in AI-related revenue over the past year, driving a significant acceleration in overall growth. The company specializes in providing affordable cloud computing services to small and medium-sized businesses (SMBs), a sector often overlooked by larger cloud providers. With its stock already up 77% in 2026, investor confidence is buoyed by the rising demand for AI capabilities among SMBs.

The growth trajectory is underscored by DigitalOcean’s record $970 million annual run-rate revenue for 2025, with AI products contributing $120 million to that figure. The company plans to raise $800 million to expand its data center infrastructure, addressing supply constraints and positioning itself for further revenue growth of 21% in 2026 and 30% in 2027. Despite its stock’s impressive gains, it remains relatively attractively valued based on forward price-to-sales ratios.

For market professionals, DigitalOcean’s focus on the SMB segment and its competitive pricing strategy could present a compelling investment opportunity, especially as it ramps up AI infrastructure to meet surging demand.

Source: nasdaq.com