DigitalOcean shares surge 279% on strong AI-driven growth and institutional buying.

DigitalOcean Holdings, a cloud computing company focused on AI infrastructure, has seen its shares rise 279% since October 2025 due to strong institutional buying and solid financial results. The company reported a 22% revenue increase to $258 million and a 41% EBITDA margin in Q1 fiscal 2026, raising its annual revenue guidance to $1.145 billion. With a 3-year sales growth of 16.1% and EPS growth of 267.8%, plus an expected 37.9% EPS increase this year, DigitalOcean is attracting significant investor interest. This momentum suggests the stock could be a valuable addition to diversified portfolios.