BofA Raises DigitalOcean (DOCN) PT as Viral “Clawdbot” Success Fuels Agentic AI Growth

DigitalOcean Holdings Inc. (NYSE:DOCN) is one of the best performing new tech stocks to buy now. On January 27, Bank of America analyst Wamsi Mohan raised the firm’s price target on DigitalOcean to $72 from $60 with a Buy rating. Mohan noted that the company’s shares are trading higher as agentic AI assistants, specifically Clawdbot, gain traction across developer communities. The firm is raising its multiple to reflect the early innings of agentic AI adoption and broadening use cases. DigitalOcean is positioned to capitalize on early-stage AI agent deployments as developers prioritize an always-on server with predictable unit economics.

Earlier on January 12, Barclays raised the firm’s price target on DigitalOcean to $63 from $49 with an Overweight rating, having adjusted ratings in the software group as part of its 2026 outlook. Barclays sees a favorable setup for software in 2026, citing stable macro and IT spending while noting that stock valuation levels are low and the sector is out of favor.

BofA Raises DigitalOcean (DOCN) PT as Viral "Clawdbot" Success Fuels Agentic AI Growth

Piper Sandler also raised the price target on DigitalOcean Holdings Inc. (NYSE:DOCN) to $50 from $47 with a Neutral rating on January 5, slightly adjusting estimates following a cohort update. While the firm is encouraged by bigger deal momentum, a mix shift, and the potential of a mini-analyst day catalyst, Piper Sandler sees little room for error at these levels due to limited visibility and the fact that 2026 NNARR assumes the company will add more than it is already projected to do in 2025.

DigitalOcean Holdings Inc. (NYSE:DOCN), through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. It provides on-demand infrastructure and platform tools for developers at growing tech companies.

While we acknowledge the potential of DOCN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DOCN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.