US Small-Cap Stocks Surge 7% on AI Cloud Tailwinds

DigitalOcean Holdings Inc. (NASDAQ: DOCN) surged 7.51% on the New York Stock Exchange on the 17th, closing at $83.42 and adding roughly $623 million to its market capitalization. Investors have been buying in on the heels of strong recent earnings and growing optimism around AI-driven cloud growth.

In its late-February release, DigitalOcean reported fourth-quarter 2025 revenue of $242 million and full-year revenue of $901 million—both ahead of market expectations—and raised its fiscal 2026 revenue growth outlook to approximately 21%.

The company’s Agentic Inference Cloud service, designed specifically for AI workloads, has accelerated development, and renewed bullishness on AI has driven the stock’s double-digit gains in recent sessions.

As a U.S. cloud infrastructure provider focused on small and midsize businesses and developers, DigitalOcean offers virtual servers, managed databases and application platforms through a user-friendly interface and competitive pricing. Since its IPO on the NYSE, the company has leveraged its developer community and AI demand to expand its footprint, achieving a current market cap of about $7.6 billion.