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NEW YORK - DigitalOcean Holdings, Inc. (NYSE: DOCN), a $2.61 billion cloud computing company with impressive revenue growth of ~13% and healthy gross margins of 60%, has announced the general availability of new GPU Droplets featuring NVIDIA RTX 4000 Ada Generation, NVIDIA RTX 6000 Ada Generation, and NVIDIA L40S GPUs on its cloud platform. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value calculations. Aimed at supporting a variety of artificial intelligence (AI) workloads, these additions complement the existing NVIDIA H100 GPU Droplets and H200 Bare Metal GPUs, offering customers a wider range of options for AI applications such as generative AI, large-language models, and 3D graphics.
Bratin Saha, DigitalOcean’s Chief Product and Technology Officer, underscored the company’s commitment to simplifying cloud computing and AI, stating that the new GPU Droplets provide greater access to affordable GPUs for diverse AI workloads.
The newly introduced NVIDIA GPUs enhance DigitalOcean’s scalable cloud offerings by providing powerful computing capabilities for tasks ranging from content creation and 3D modeling to AI and graphics performance. With a strong current ratio of 2.42, DigitalOcean demonstrates solid financial health to support its expansion initiatives. InvestingPro data reveals the company maintains profitable operations with earnings of $1.14 per share over the last twelve months. The NVIDIA RTX 4000 Ada Generation GPU is designed for single-slot use, while the RTX 6000 Ada Generation GPU leverages the Ada Lovelace GPU architecture for tasks requiring substantial graphics memory and compute performance. The NVIDIA L40S GPU, featuring up to eight Tensor Core GPUs, supports graphics-intensive applications and video streaming.
DigitalOcean emphasizes the ease of setup for its GPU Droplets, which require only a few clicks to configure, in contrast to the complex configuration processes of other cloud providers. Customers also benefit from competitive pricing, enterprise-grade service level agreements (SLAs), and access to the full DigitalOcean product suite, including the GenAI Platform and Kubernetes service.
Dave Salvator, Director of Accelerated Computing Products at NVIDIA, highlighted the role of NVIDIA’s latest GPU technologies in accelerating AI initiatives for companies, noting that DigitalOcean’s platform facilitates the deployment of advanced AI workloads on NVIDIA technology.
The new GPU Droplets are currently available in DigitalOcean’s Toronto data centers. This expansion is part of DigitalOcean’s mission to democratize cloud and AI for digital native enterprises, serving over 600,000 customers worldwide. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 11 additional ProTips and a detailed research report, helping you make informed investment decisions based on extensive financial metrics and expert analysis.
The information for this article is based on a press release statement from DigitalOcean Holdings, Inc.
In other recent news, DigitalOcean reported its Q1 2025 earnings, surpassing analyst expectations with an EPS of $0.56, which was higher than the forecasted $0.42. The company’s revenue also exceeded projections, reaching $211 million, marking a 14% year-over-year increase. Despite these strong financial results, DigitalOcean’s stock experienced a decline, attributed to investor concerns about refinancing $1.5 billion in convertible debt. JMP analysts maintained their Market Outperform rating for DigitalOcean, setting a price target of $55.00, following the earnings announcement. The company’s adjusted EBITDA margin improved to 41%, up from 39%, while its adjusted free cash flow was a negative $1 million, missing the expected $19 million. DigitalOcean introduced over 50 new products and features, with a strategic focus on AI, and projected Q2 2025 revenue to be between $215.5 million and $217.5 million. The company also announced a new secured five-year credit facility agreement of $800 million to refinance part of its existing convertible notes. DigitalOcean’s CEO highlighted the company’s focus on serving larger digital-native enterprises and its commitment to AI integration.
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