Digi International Surged on AI and Automation Demand
In its Q2 2026 investor letter, Riverwater Partners highlighted Digi International (DGII) as a key contributor to the Small Cap Strategy's performance. The firm noted that DGII gained approximately 55% during the quarter due to increased demand for connected infrastructure linked with AI and automation trends. Despite underperforming relative to the Russell 2000 in Q2, Riverwater remained cautiously optimistic about opportunities created by market dislocations. Digi International provides IoT connectivity products and services globally. As of August 28, 2026, DGII closed at $75.77 per share with a one-month return of 6.61% and a year-to-date gain exceeding 116%. The company has a market capitalization of $2.88 billion and trades within a 52-week range of $33.41 to $86.84. Riverwater trimmed its position in DGII during the quarter to fund new investment ideas while maintaining sizing discipline, reflecting confidence in the stock's growth potential amid broader AI infrastructure expansion.
Tickers: $DGII
Topics: AI infrastructure portfolio performance small-cap strategy