Does DigitalOcean (DOCN) Becoming Persistent’s Exclusive SASVA Cloud Partner Reframe Its AI Differentiation Story?

• In December 2025, DigitalOcean announced a multi-year, eight-figure-per-year partnership with Persistent Systems, under which Persistent chose DigitalOcean as the exclusive cloud and AI infrastructure provider for its SASVA™ platform, powered by DigitalOcean’s Gradient AI Agentic Cloud and GPU offerings.
• The collaboration is designed to cut AI infrastructure and operational costs by over 50% for clients while using Persistent’s engineering expertise and SASVA to enhance DigitalOcean’s next-generation AI cloud platform and expand access to affordable, scalable AI for digital-native enterprises and developers.
• We’ll now examine how becoming Persistent’s exclusive SASVA infrastructure provider could reshape DigitalOcean’s investment narrative around AI-led growth and differentiation.

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DigitalOcean Holdings Investment Narrative Recap

To own DigitalOcean, you need to believe it can carve out a durable niche as the preferred, cost-efficient cloud and AI platform for developers and digital-native businesses, even while competing with much larger hyperscalers. The Persistent Systems deal looks supportive of the key near term catalyst of AI adoption and larger, multi-year contracts, but it does not remove the execution and capital intensity risks around scaling AI infrastructure and selling into more complex enterprise-style relationships.

The October 2025 expansion of DigitalOcean’s AI offerings and launch of the AI Partner Program is particularly relevant here, because it set the groundwork for deeper ecosystem collaborations like the Persistent SASVA partnership. Together, these moves tie directly into the company’s catalyst around growing AI/ML revenue and product uptake, while also testing whether DigitalOcean can consistently win and deliver larger workloads without pressuring margins or overextending its balance sheet.

However, investors should also be aware that execution on larger, multi-year enterprise contracts could...

Read the full narrative on DigitalOcean Holdings (it's free!)

DigitalOcean Holdings' narrative projects $1.3 billion revenue and $182.0 million earnings by 2028. This requires 14.6% yearly revenue growth and about a $55.6 million earnings increase from $126.4 million today.

Uncover how DigitalOcean Holdings' forecasts yield a $53.33 fair value, a 16% upside to its current price.

Exploring Other Perspectives

Thirteen Simply Wall St Community valuations for DigitalOcean span roughly US$24 to US$55 per share, underscoring how differently individual investors see the stock’s potential. Against that backdrop, the reliance on cost-effective AI and cloud infrastructure as a key growth driver invites you to weigh how the Persistent SASVA partnership might influence both revenue durability and competitive positioning over time.

Explore 13 other fair value estimates on DigitalOcean Holdings - why the stock might be worth as much as 20% more than the current price!

Build Your Own DigitalOcean Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DigitalOcean Holdings research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free DigitalOcean Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DigitalOcean Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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