DigitalOcean Holdings, Inc. (NYSE:DOCN) is recognized as one of the Best AI Stocks to Buy under $50, showing strong earnings growth in Q3 and raising its full-year revenue and net income guidance. The company also announced a new AI partnership with Persistent Systems to advance scalable and secure AI systems.

DigitalOcean’s revenues reached $230 million, a 16% increase year-over-year, with net income up 381%. CEO Paddy Srinivasan highlighted their cloud platform as a top choice for AI and digital native enterprises. The company raised its full-year revenue guidance to $897 million and Non-GAAP diluted net income per share to $2.05.

Persistent Systems has selected DigitalOcean as its cloud and AI infrastructure provider for its AI-powered platform SASVA. This collaboration aims to address challenges in AI adoption, such as rising GPU and infrastructure costs, agent development ecosystems, and security concerns. The partnership combines Persistent’s AI engineering expertise with DigitalOcean’s cloud infrastructure and AI platform capabilities for enterprise growth and innovation.

DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform, showing promising potential as an investment. However, other AI stocks may offer greater upside potential and less downside risk. For those seeking an undervalued AI stock benefiting from tariffs and the onshoring trend, explore the best short-term AI stock in a free report.

Read more at Yahoo Finance: DigitalOcean (DOCN) Expands AI Partnerships as Demand for Agentic Cloud Rises