-+ 0.00%
-+ 0.00%
-+ 0.00%

Why DigitalOcean Holdings (DOCN) Is Up 5.6% After Major AI-Focused Analyst Upgrades And What's Next

Simply Wall St·02/18/2026 02:21:15
Listen to the news
  • Earlier in February 2026, analysts at Cantor Fitzgerald and Bank of America upgraded their views on DigitalOcean Holdings, emphasizing its developer-focused cloud platform and strengthening position in AI infrastructure and services.
  • These research calls highlighted DigitalOcean’s success in attracting AI-native customers like Character.ai and growing usage of its GPU-led platform-as-a-service and agentic AI tools within developer communities.
  • We’ll now examine how this increased confidence in DigitalOcean’s AI partnerships and GPU-led platform may influence the company’s broader investment narrative.

Capitalize on the AI infrastructure supercycle with our selection of the 34 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.

DigitalOcean Holdings Investment Narrative Recap

To own DigitalOcean, you generally need to believe its developer-first cloud and AI platform can keep winning share despite intense competition and capital-heavy GPU investments. The recent analyst upgrades support that thesis by spotlighting AI-native wins and GPU traction, but they do not remove the near term execution risk around large enterprise deals, or the pressure on margins if AI infrastructure spending or pricing weakens.

The most relevant recent announcement here is DigitalOcean’s Inference Cloud deployment with Character.ai, which reported roughly 2x production throughput and about 50% lower cost per token. For investors focused on catalysts, this ties directly to the AI story highlighted by Cantor and Bank of America, reinforcing that real AI workloads are already running at scale on DigitalOcean rather than remaining a purely aspirational growth vector.

Yet behind the AI momentum, investors should still watch how rising infrastructure spend and hyperscaler competition could affect long term margins and customer retention...

Read the full narrative on DigitalOcean Holdings (it's free!)

DigitalOcean Holdings' narrative projects $1.3 billion in revenue and $182.0 million in earnings by 2028. This requires 14.6% yearly revenue growth and about a $55.6 million earnings increase from $126.4 million today.

Uncover how DigitalOcean Holdings' forecasts yield a $56.17 fair value, a 17% downside to its current price.

Exploring Other Perspectives

DOCN 1-Year Stock Price Chart
DOCN 1-Year Stock Price Chart

Some of the lowest ranked analysts were expecting revenue of about US$1.2 billion and earnings near US$163.6 million by 2028, which reflects a much more cautious view than the recent AI driven enthusiasm and highlights how differently you and other investors might weigh these new AI partnerships.

Explore 13 other fair value estimates on DigitalOcean Holdings - why the stock might be worth less than half the current price!

Reach Your Own Conclusion

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

Ready For A Different Approach?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.