DigitalOcean (DOCN) Expands AI Partnerships as Demand for Agentic Cloud Rises

DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the Best AI Stocks to Buy under $50. The comprehensive agentic cloud posted stellar earnings performance in the third quarter, followed by a higher growth outlook for full-year 2025.

It posted revenues of $230 million, up 16% year-over-year, while net income was $158 million, up 381% year-over-year. Paddy Srinivasan, CEO of DigitalOcean, noted how the company’s unified agentic cloud platform is “emerging as a preferred destination for AI and digital native enterprises building and scaling AI workloads.”

Looking ahead, it raised its full-year guidance from $896 to $897 million in revenues and $2.00 to $2.05 in Non-GAAP diluted net income per share.

The company also recently made headlines after it announced a new AI partnership aimed at advancing scalable and secure AI systems. Persistent Systems, a global Digital Engineering and Enterprise Modernization leader, is collaborating with DOCN to develop cost-effective infrastructure that supports enterprise growth and innovation.

Under the agreement, Persistent has selected DigitalOcean as its cloud and AI infrastructure provider for its AI-powered platform SASVA, which will run on DigitalOcean’s Gradient AI Agentic Cloud and GPU offerings.

By combining Persistent’s AI engineering expertise with DigitalOcean’s cloud infrastructure and AI platform capabilities, the collaboration seeks to enable companies to address challenges organizations face in AI adoption.

These challenges include rising GPU and infrastructure costs, challenges in agent development ecosystems, and security concerns.

DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform.

While we acknowledge the risk and potential of DOCN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DOCN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 AI Stocks Investors Are Watching

Disclosure: None.