DigitalOcean is emerging as an AI-native cloud purpose-built for inference and smaller developers/enterprises that are underserved by hyperscalers. Q2 2026 revenue grew 29% to $281M, AI customer ARR grew 212% to $234M, million-dollar customer ARR grew 214% to $259M, and RPO reached $894M. The edge is direct AI monetization and accelerating committed demand, but valuation after the rerating requires patience.
Narrative: Added to Raj-trades watchlist Aug 15, 2026 at Raj's direction. Operating proof is unusually strong: AI customer ARR is about 21% of total ARR and growing 212%, inference services reportedly grew about 800%, management raised 2026 revenue guidance to $1.17-$1.18B, and RPO expanded 12x. However, at roughly $132/share and a $15.3B market cap, the stock is around 13x guided 2026 revenue after a n
Next catalyst: Q3 2026 earnings: AI customer ARR, inference revenue/usage, RPO conversion, gross margin, capex and free-cash-flow update; any guidance revision.
Max entry: 115.0 · Entry limit: 110.0 · Timeframe: months