We recently published a list of Top 10 AI Stocks That Are Being Monitored By Wall Street. In this article, we are going to take a look at where DigitalOcean Holdings, Inc. (NYSE:DOCN) stands against other top AI stocks that are being monitored by Wall Street.
As the global tech sector was catching up to the disruption caused by DeepSeek’s r1 AI model, Chinese e-commerce giant Alibaba announced its brand new Qwen 2.5 AI model on the first day of the Lunar New Year. The Qwen 2.5 is pre-trained on large-scale multilingual and multimodal data and rivals DeepSeek’s AI model.
“Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” the group’s cloud unit on its official WeChat account.
The latest Chinese AI model release also sent US firms scrambling to innovate and stay ahead of the competition. OpenAI CEO Sam Altman recently teased several “exciting new features” coming to ChatGPT and a new ChatGPT Gov tool to bolster ties with the US government.
The rise of advanced, cost-effective Chinese AI models has introduced volatility in US stocks as analysts rampantly rerate companies and shift outlooks based on the rapidly evolving tech landscape.
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. The company offers an infrastructure as a service (IaaS) platform for developers to access powerful virtual machines for their AI/ML workloads, seamlessly create and deploy AI agents, and deliver context-aware responses for diverse use cases. DigitalOcean Holdings, Inc.’s (NYSE:DOCN) GenAI Platform streamlines the custom AI agent creation, integration, and deployment process, supported by its fully managed services.
On January 28th, Goldman Sachs analyst Gabriela Borges raised DigitalOcean Holdings, Inc.’s (NYSE:DOCN) stock target price to $44 from $40 while maintaining a “Buy” rating. The analyst highlighted the firm’s recent keynote event, which demonstrated its offering across the infrastructure, platform, and application layers for core cloud computing and GenAI and revealed multiple product innovations, like its GenAI Platform for developing use-case specific agents supported by their own data and foundational LLMs. The event led Goldman Sachs to have a “better appreciation” of the degree to which the company’s AI offerings can provide a structural tailwind to growth as demand for cost-effective AI for businesses grows.
Overall, DOCN ranks 10th on our list of top AI stocks that are being monitored by Wall Street. 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 time frame. 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 Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
