Shares of DigitalOcean Holdings, Inc. (DOCN) are soaring 5.07% in intraday trading on Monday, following bullish initiations from two prominent Wall Street firms. The cloud infrastructure provider is attracting positive attention from analysts who see significant growth potential in the company's offerings, particularly in the realm of AI workloads.

Mizuho Securities kicked off the day by initiating coverage on DigitalOcean with a Buy rating and a price target of $60. This optimistic stance was quickly echoed by Oppenheimer, which also initiated coverage with an Outperform rating and a matching $60 price target. Oppenheimer's analysts cited improving traction and momentum with both existing and new customers as part of a broader turnaround story for the company.

The market's enthusiastic response to these analyst reports underscores growing confidence in DigitalOcean's strategy and market position. Oppenheimer highlighted the company's potential to capitalize on AI inferencing workloads, suggesting that DigitalOcean could effectively compete with "neo-cloud" vendors and drive over 20% topline growth for the next several years. Moreover, the firm noted that DigitalOcean's total addressable market opportunity might be significantly larger than current estimates, potentially leading to revenue and margin trajectories that exceed consensus expectations.