Artificial intelligence and machine learning are driving growth in cloud computing, with attention shifting to mid-sized platforms like DigitalOcean. In Q3 2025, DigitalOcean reported $230 million in revenue, up 16% YOY, and strong profitability with a 60% gross margin. The company’s AI business is booming, with revenue more than doubling YOY for the fifth consecutive quarter. With increased investment in capacity, DigitalOcean expects 18-20% revenue growth in 2026, a year ahead of schedule, and strong profitability. Analysts expect revenue and earnings to rise in 2025. DOCN stock has a “Moderate Buy” consensus rating on Wall Street, with potential upside.

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