DOCN Jumps 57% After EPS Revision: AI Cloud Services Surge

DOCN surged 56.6% after analysts raised its forward EPS growth estimate from 68.2% to 69.8% on May 3, 2026. Q1 2026 results confirmed accelerating momentum as the company pivots from "GPU landlord" to full-stack AI platform, with non-bare metal services exceeding 80% of AI customer ARR.

DigitalOcean raised its 2027 revenue growth target to 50%+ from 30% after securing 60 megawatts of incremental capacity, and the Cataneo middleware acquisition enables workload steering across models and regions, supporting the bull case despite the 56.6% post-detection rally.

DOCN's surge followed an EPS revision on May 3 and Q1 2026 earnings on May 5 that showed strong retention and expansion within top cloud and AI-native cohorts. Management's shift toward full-stack platform services rather than bare-metal GPU hosting attracted institutional buying.

HUT jumped 51.1% after its forward EPS growth estimate reached 101.2% on April 28, 2026. Q1 results beat with an adjusted loss of $0.12 per share versus the $0.28 estimate, and the company highlighted $16.8 billion in contracted revenue from data center leases with 597 MW of capacity.

Hut 8's $16.8 billion contracted revenue base from triple-net, take-or-pay leases with blue-chip investment-grade counterparties provides visible cash flow visibility. The Beacon Point lease demonstrates repeatability across tenants and geographies, supporting continued expansion.

HUT's surge contrasted with Core Scientific's 9% decline after missing Q1 expectations, as investors favored Hut 8's power-first AI campus model. The Beacon Point lease announcement showed Hut 8's distinct strategy of securing power infrastructure that incumbents overlooked.

STX gained 32.0% after analysts raised its forward EPS growth estimate from 56.5% to 58.2% on April 27, 2026, driven by secular demand for enterprise storage solutions supporting AI infrastructure buildout.

STX's EPS revision to 58.2% growth reflects structural demand for high-capacity storage as AI workloads expand data center footprints. The +1.7pp revision indicates accelerating analyst conviction in the storage recovery cycle.

Analysts project STX's forward EPS growth at 58.2%, up from the prior estimate of 56.5% as of April 27, 2026, representing a +1.7 percentage point revision driven by AI infrastructure storage demand.

SNDK surged 31.8% after analysts raised its forward EPS growth estimate from 155.1% to 159.7% on April 27, 2026. The rally followed a new long-term contract model with five deals covering over $42 billion in revenue through fiscal 2027, with $11 billion in guaranteed commitments.

SanDisk's new supply agreement model covering over one-third of fiscal 2027 output provides revenue visibility that Wall Street rates as a Strong Buy. Analysts at Morgan Stanley, Citi, and BNP Paribas see the framework as reducing cyclical exposure in memory markets.

SNDK jumped 31.8% following an EPS revision to 159.7% growth and a new customer contract structure announced alongside strong fiscal Q3 results. Five long-term supply agreements with guaranteed minimums transformed investor perception of Sandisk's earnings stability.

MU gained 27.1% after analysts raised its forward EPS growth estimate from 66.9% to 67.1% on April 27, 2026. The stock is up nearly 500% over the past 12 months as AI infrastructure buildout drives sustained demand for high-bandwidth memory.

Analyst opinion on MU remains divided: the average target implies upside while the lowest target around $400 suggests 30% downside risk. 27 of 30 analysts rate the stock a Buy, citing AI-driven memory demand that may be extending beyond historical cycles.

Analysts project MU's forward EPS growth at 67.1%, up from the prior estimate of 66.9% as of April 27, 2026, representing a modest +0.2 percentage point revision. The stock has gained 27.1% since the revision and nearly 90% year-to-date.