Shares of DigitalOcean Holdings, Inc. (DOCN) are soaring 5.07% in intraday trading on Monday, driven by two bullish analyst reports that highlight the cloud infrastructure provider's growth potential and expanding market opportunities.

Mizuho Securities initiated coverage on DigitalOcean with a Buy rating and a $60 price target, signaling confidence in the company's future performance. Adding to the positive sentiment, Oppenheimer also initiated coverage with an Outperform rating and a matching $60 price target, emphasizing DigitalOcean's improving traction and momentum with existing and new customers.

Oppenheimer's report particularly noted DigitalOcean's potential in the AI space, stating that customers are expected to expand their usage of the company's infrastructure-as-a-service and platform-as-a-service cloud offerings, especially for AI inferencing workloads. The firm believes this expansion will help DigitalOcean compete effectively with "neo-cloud" vendors and drive over 20% topline growth for the next several years. Furthermore, Oppenheimer suggests that DigitalOcean's total addressable market opportunity could be significantly larger than current estimates, potentially boosting revenue and margin trajectory above consensus expectations.