Meet the Red-Hot Artificial Intelligence (AI) Infrastructure Stock That Has Crushed Oracle With 115% Gains in a Year. It Is Still Worth Buying Hand Over Fist.
Publish Date: 2026-03-22 07:46:00
Source Domain: www.theglobeandmail.com
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Oracle’s Growth in AI Infrastructure: Oracle is experiencing significant growth in its artificial intelligence (AI) infrastructure, with a year-over-year increase of 325% in remaining performance obligations (RPO) to $553 billion, illustrating strong future revenue potential.
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DigitalOcean’s Superior Stock Performance: DigitalOcean’s shares have surged 115% over the past year compared to Oracle’s modest 4% gain, attracting more investor attention despite being a smaller company.
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DigitalOcean’s Affordable Business Model: Unlike Oracle’s large-scale, hyperscaler contracts, DigitalOcean targets small and medium-sized businesses and startups, providing cheaper, on-demand cloud computing services which has led to robust customer growth and revenue estimates.
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AI-Driven Growth: Artificial intelligence is a major driver for DigitalOcean, contributing significantly to its revenue growth forecast with plans to increase revenue by 21% in 2026 and 30% in 2027. Its AI infrastructure platform, which includes large language models and managed services, has seen an ARR revenue increase of 150% year-over-year.
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Strategic Investments in Capacity: DigitalOcean plans to add 31 megawatts of cloud computing capacity to meet strong demand, despite acknowledging this will impact its bottom line. The company expects to maintain a 18% to 20% unlevered adjusted free cash flow margin.
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Positive Investment Prospect: With a small premium to the tech sector average, DigitalOcean’s promising trajectory based on new capacity and strong AI demand suggests continued growth, with potential for a substantial increase in its market cap over the next few years.
