15 Software Infrastructure Stocks Outperforming In 2025

5. DigitalOcean Holdings Inc. (NYSE:DOCN)

DigitalOcean Holdings Inc. is a cloud computing platform that offers on-demand infrastructure and platform tools for growing & small online businesses, start-ups, and developers. The company also offers platform-as-a-service (PaaS), infrastructure-as-a-service (IaaS), and software-as-a-service (SaaS) solutions. The stock is up 31% so far this year.

DOCN provides affordable cloud computing services to small and medium enterprises. This is a growing market and one that the company intends to dominate. AMD’s acquisition of Vultr, which operates a similar business, is proof that this TAM is big enough. It also validates the company’s business model.

Even though the company’s growth has slowed down, it still outpaces the broader cloud-computing industry by a long margin. DOCN overhauled its leadership in the last two years and switched from a finance-focused executive team to a technology-focused team. This team may be inexperienced but so far is delivering well. Here’s what Citi analyst Mark Zhang had to say about the company:

DOCN gradually re-building credibility may take time, but multiple identifiable levers to re-accelerate organic growth (lucratively re-engage and upsell the base, lower-end hyperscaler logo wins, ramping top-of-funnel efforts) underwrite our conviction on consistent topline and profitability upside going forward.

The stock lost 23% in value in a matter of three months but the current rally has recovered all the losses. In hindsight, it was a good opportunity to buy this strong stock and that opportunity is still out there for the taking.