DigitalOcean Holdings, Inc. (DOCN) shares surged 5.13% in pre-market trading on Tuesday, as investors reacted to a robust pre-announcement of second-quarter results and accelerating artificial intelligence cloud demand ahead of the company’s official earnings release.

The cloud provider previously disclosed that Q2 revenue grew approximately 29% year-over-year, with adjusted EBITDA margin and non-GAAP earnings per share expected to reach or exceed the high end of its prior guidance. The company also signed multiple nine-figure annual customer commitments for its AI inference and cloud products during the quarter, driving its remaining performance obligations to over $800 million—a more than tenfold increase from the prior year. Analysts at UBS noted that the Richmond data center, which came online in March, is already running near full capacity, further underscoring strong demand.

The stock had experienced a more than 15% decline earlier this year following the completion of a $472 million convertible senior notes repurchase and the issuance of roughly 12.5 million new shares. With that short-term selling pressure now largely absorbed and fundamental expectations remaining elevated, bullish sentiment has recovered heading into the earnings report.