Bank of America double upgrades this cloud stock, thinks it could prove a big AI beneficiary

Bank of America believes that DigitalOcean is poised to benefit from rising artificial intelligence inferencing demand. Analyst Wamsi Mohan double upgraded the cloud service provider to a buy rating from underperform. He also hiked his price target to $60 per share from $34. Shares of DigitalOcean have already surged 35% this year. Mohan's new forecast implies potential, 12-month upside of a little more than 30%. DOCN YTD mountain DOCN YTD chart As a catalyst, Mohan pointed to strong demand, estimating that the company's preliminary revenue guidance for 2026 is approaching growth of 20%. DigitalOcean has also shared improved visibility and conviction in demand through the signing of "multiple 8-figure deals," he wrote. "CEO Srinivasan noted very strong growth and improved visibility as rea