Wall Street analysts maintain a median price target of $177 for DOCN, implying 8% upside after a 240% gain this year.
DigitalOcean shares have surged 240% in 2026, significantly outperforming Nvidia’s 15% gain amid concerns over AI spending sustainability and Nvidia’s market dominance. The cloud computing firm’s expansion into AI services has driven its rally, with analysts citing undervaluation despite the gains.
Nvidia, the leader in AI infrastructure, holds nearly 90% market share in AI accelerators and over 40% of AI data center spending. However, competition from custom chips, such as Alphabet’s TPU, may erode its position in the coming years. DigitalOcean’s smaller scale contrasts with Nvidia’s vertical integration and software ecosystem.
Analysts set a median target price of $177 for DigitalOcean, up from its current $164, reflecting confidence in further upside. The stock’s performance highlights shifting investor focus toward emerging AI players in the cloud sector.