What Happened?

A number of stocks jumped in the afternoon session after investor optimism around artificial intelligence fueled broad market gains. 

Technology stocks with a focus on artificial intelligence once again led the market higher, boosting the Nasdaq and S&P 500. Companies at the forefront of the AI boom, such as Nvidia and Broadcom, saw significant jumps in their share prices. The rally reflected a renewed belief among investors in the transformative potential of AI technology to drive future growth and productivity. The rally was further supported by a surprise cooling in the November consumer price index (CPI) report, which triggered market pricing for additional rate cuts in the coming year. This created a more favorable environment for growth-oriented software companies as borrowing costs decrease.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Data Storage company DigitalOcean (NYSE: DOCN) jumped 3.9%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free for active Edge members.
• Healthcare And Life Sciences Software company Veeva Systems (NYSE: VEEV) jumped 2.7%. Is now the time to buy Veeva Systems? Access our full analysis report here, it’s free for active Edge members.
• Data Infrastructure company Teradata (NYSE: TDC) jumped 2.7%. Is now the time to buy Teradata? Access our full analysis report here, it’s free for active Edge members.

Zooming In On DigitalOcean (DOCN)

DigitalOcean’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 3.9% on the news that the company introduced its Gradient™ AI Agent Development Kit, a new tool aimed at helping software developers build and deploy production-ready AI agents. The product was designed to address a common challenge for developers: turning an AI prototype into a reliable and testable application. The kit is a code-first software development kit that lets developers create and test complex agent workflows within their existing work environments. The announcement positioned DigitalOcean to better serve the growing market for AI development tools by simplifying a key part of the creation process.

DigitalOcean is up 39.3% since the beginning of the year, and at $47.73 per share, it is trading close to its 52-week high of $51.67 from November 2025. Investors who bought $1,000 worth of DigitalOcean’s shares at the IPO in March 2021 would now be looking at an investment worth $1,123.

While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.