12 Best Artificial Intelligence Stocks Under $50 According to Analysts

10. DigitalOcean Holdings Inc. (NYSE:DOCN)

Share Price as of January 5: $35.72

Average Upside Potential as of January 5: 11.98%

Number of Hedge Fund Holders: 22

DigitalOcean Holdings Inc. (NYSE:DOCN) is a global cloud computing platform provider. It recently acquired Paperspace, a prominent provider of cloud infrastructure and AI software. This acquisition positions it to expand its capabilities in the rapidly growing AI and ML market, offering its customers enhanced tools and resources for developing and deploying AI applications.

The company’s AI/ML platform demonstrated growth in Q3 2024, with ARR surging by ~200%. The platform empowers customers to build sophisticated AI applications without deep expertise in AI/ML. This means that customers can create personalized AI agents using their own data and foundational models. For instance, Autonoma Cloud, a customer using this platform, has created AI agents that understand user-specific contexts and retrieve machine-specific data, enhancing the user experience.

DigitalOcean Holdings Inc. (NYSE:DOCN) is also developing AI-powered tools to streamline cloud computing operations. The AI SRE agent, a prime example, assists in troubleshooting issues within customer applications, reducing resolution times, estimated at ~35% based on internal testing data. This focus on AI-driven innovation positions the company for long-term success within the rapidly evolving cloud computing market.