We recently compiled a list of the Top 10 AI Stocks News: Latest Analyst Ratings And Upgrades. In this article, we are going to take a look at where DigitalOcean Holdings Inc. (NYSE:DOCN) stands against the other AI stocks.
On January 27th, US and European tech stocks witnessed a $1 trillion sell-off, with most of the “magnificent seven” stocks trading in red as China’s new DeepSeek AI model rattled investors. The AI model was supposedly built for less than $6 million, which is a stark contrast to the billions spent by rivals. The DeepSeek app, launched late last week, has become the top-rated free app on the Apple App Store in the US and the UK.
As investors question America’s dominance in AI, the sector continues to drive innovation and rapidly achieve milestones across diverse industries. The Global Artificial Intelligence Industry Forecast revealed that the global AI market was worth almost $62.35 billion in 2020 and will grow at a 40% CAGR between 2021 and 2026. Most importantly, AI is helping the world achieve the net-zero emissions goal, playing a key role in the global energy transition through greater operational efficiency.
“Academia needs to be a player here, as a neutral ground to recognize some of these issues and develop systems in a different way,” said Stanford HAI Vice Director James Landay during the 2025 WEF in Davos. “Academia is also an interdisciplinary player—we have experts in law, medicine, history, social sciences, computer science, art, and design, coming together to ask questions, rather than tech companies focused primarily on a profit motive. We need academia and non-government organizations to have a say and play in this game and question this power dynamic.”
This article focuses on the latest stock ratings and analyst calls on AI companies involved in digital advertising, drone technology, and cloud providers to cybersecurity, telecom, defense, and energy generation.
We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up view of a laptop computer, the cloud computing platform displayed on the screen.
DigitalOcean Holdings Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 22
DigitalOcean Holdings Inc. (NYSE:DOCN) is a cloud service provider with data centers globally. It offers an infrastructure as a service (IaaS) platform, equipping software developers with powerful virtual machines to run their AI/ML workloads and seamlessly create and deploy AI agents with enhanced customization features to deliver context-aware responses for diverse use cases.
On Monday, January 27th, JMP Securities analyst Patrick Walravens increased DigitalOcean Holdings Inc.’s (NYSE:DOCN) stock target price to $55 from $47 and maintained an “Outperform” rating on the company shares. The brokerage recently attended DigitalOcean Deploy, the company’s annual user conference, and found that most of the cloud provider’s clients expect their spending to increase over the next 12-18 months. Analysts see DigitalOcean Holdings Inc. (NYSE:DOCN) as an opportunity for long-term capital appreciation.
Overall DOCN ranks 8th on our list of the top AI stocks in latest analyst ratings and upgrades. While we acknowledge the potential of DOCN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DOCN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
