Artificial intelligence (AI) stocks were the place to be in 2023. Investors earned significant gains in leading AI names like Nvidia, , and Amazon. Those companies are generating most of their AI-related revenue from the data center and the cloud, which is where businesses are developing, training, and deploying their latest AI applications.

However, not all AI-related stocks caught the attention of investors early on. There was one cloud company that joined the AI party late in 2023, which means its stock could be set up for outsized gains this year. That company is DigitalOcean (NYSE: DOCN). Its shares are trading 71% below their all-time high, which was set during the tech frenzy of 2021, when investors assigned the stock an ambitious valuation.

Below, I'll explain the significance of DigitalOcean's entry into AI, and why now might be an opportune time for investors to buy the stock.

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Source Fool.com