Shares of DigitalOcean are higher as the market continues to price in the company’s recently refreshed growth narrative centered on AI inferencing and accelerating revenue growth. The bullish tone was reinforced by DigitalOcean’s latest outlook calling for 2026 revenue of $1.075 billion to $1.105 billion, which implies about 21% growth at the midpoint and has helped keep momentum traders engaged following the most recent earnings cycle.

The stock is also trading in the shadow of DigitalOcean’s recently priced upsized common-stock offering: 10,389,611 shares for approximately $800 million in gross proceeds (priced March 25, 2026, with the offering expected to close March 26, 2026). While secondary issuance can pressure shares via dilution and increased float, the raise can also be read as a funding catalyst for incremental data center capacity and balance-sheet flexibility, which bulls argue supports the multi-year AI workload opportunity.

Investors will likely focus on whether DigitalOcean converts AI and digital-native enterprise interest into sustained net dollar retention and higher revenue growth through 2026, especially as capacity additions come online. Near-term, watch for follow-through disclosures around deployment timing, utilization, and any further commentary on how proceeds are being allocated between growth capex and financial optimization.