This AI Stock Is Soaring, but It's Not Too Late to Buy

DigitalOcean (NYSE: DOCN), a cloud computing platform that pitches itself as a simpler alternative to Amazon Web Services and Microsoft Azure, is rapidly scaling up its artificial intelligence (AI) ambitions. The company acquired AI start-up Paperspace in mid-2023 to get its foot in the door. Under CEO Paddy Srinivasan, who took over in early 2024, DigitalOcean has been building out a full-scale AI computing platform.On top of offering virtual servers outfitted with powerful graphics processing units (GPUs), DigitalOcean's new Gradient AI platform enables customers to build AI agents without managing infrastructure. The company's AI-related revenue more than doubled year over year in the second quarter, which was one reason why the stock exploded higher. The day after that earnings report, DigitalOcean stock soared nearly 29%.AI is helping reaccelerate growth for DigitalOcean, and the stock looks like a solid buy, despite the higher price tag.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool