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Cloud Computing July 31, 2025 DigitalOcean's AI Business Soars as Cloud Strategy Pays Off

DigitalOcean (DOCN) has reported exceptional growth in its artificial intelligence segment, with AI annual recurring revenue surging by more than 160% year-over-year. The company achieved a 61% gross margin in Q1 2025, demonstrating the profitability of its AI-focused cloud services. Financial analysts remain bullish on DOCN's prospects, with consensus price targets suggesting potential upside of approximately 43% from current levels.

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