DOCN - AI Compute Power Efficiency Winner - Updated vs NBIS

DigitalOcean supports AI workloads with its compute services, including virtual machines (Droplets), Kubernetes, and serverless Functions. Its infrastructure offers scalability, flexibility, and cost-effectiveness, making it suitable for AI tasks like model training, deployment, and data processing. DigitalOcean's services enable users to deploy machine learning frameworks, utilize GPU acceleration, and store large datasets, supporting a range of AI use cases.

How do they make money? DigitalOcean makes money mainly through subscription fees for its cloud services. Customers pay for what they use, choosing from various plans based on their computing and storage needs. Key services include:
-Virtual machines (Droplets)
-Managed databases
-Object storage
-Networking
Pricing depends on usage, such as the number of virtual machines or storage amount. DigitalOcean also partners with developers and open-source communities, adding value to its platform and attracting more users.

DigitalOcean has formed a strategic partnership with $NVIDIA (NVDA.US)$ to enhance its cloud infrastructure, particularly in AI and machine learning (AI/ML) applications. This collaboration includes the virtualized availability of NVIDIA H100 Tensor Core GPUs on DigitalOcean's Paperspace platform, providing startups and growing digital businesses with access to powerful GPUs for AI compute.

source: Tipranks

Try not to ignore this stock, during this recovery rally the stock remains undervalued and under looked by WallStreet. The company is solid and earnings are growing. The M&A season will begin soon with more certainty confidence coming back to the markets and this could be a solid acquisition by a fellow competitor $Cloudflare (NET.US)$ , which has been rumor before to be link. Personally I think this stock will eventually go to 36-41 price tag.

**New** Updated 06/13/2025 (additional information)

As someone that owns $NEBIUS (NBIS.US)$ and $DigitalOcean (DOCN.US)$ I wanted to do a research comparison. On my personal Robinhood account I reduce my NBIS by more than half and added my exposure to DOCN. Already remember to take profit when the opportunity presents itself. Heres what I found:

DigitalOcean and Nebius are cloud providers that offer various services, including virtual private servers (VPS), block storage, object storage, and managed services. Here are some key differences:

*Pricing*
- DigitalOcean's prices start at $6/month for a basic VM with 1 vCPU and 1 GiB RAM, while Nebius starts at $38.51/month for a VM with 2 vCPUs, 8 GB RAM, and 40 GB SSD.
- Block storage costs $10/month for 100 GB on DigitalOcean, compared to $7/month for 100 GB on Nebius.
- Object storage costs $20/month for 1 TiB on DigitalOcean, compared to $18.80/month for 1 TB on Nebius.

*Services and Features*
- Managed Services: DigitalOcean offers a wide range of managed services, including databases, serverless functions, and Kubernetes. Nebius offers managed services alongside cloud GPUs.
- Data Center Locations: DigitalOcean has 14 data center locations worldwide, while Nebius has 2 data center locations, both in the EU.
- GPU Options: Both providers offer GPU-powered servers, but DigitalOcean's options include Nvidia H100 SXM, while Nebius offers L40S PCIe and H100 SXM.

Of course this goes for the same for $CoreWeave (CRWV.US)$ in a way.

Please do your own homework 📄 and research before committing. These are my opinions and not financial advise.

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