Interest rate headlines are back in focus as Federal Reserve Chairman Kevin Warsh steps onto the global stage, and that matters for how you think about growth stocks with bigger price swings. With markets weighing the chance of sharper rate hikes, softer private payrolls data, and a quieter Fed communication style, some higher growth companies may face fresh pressure while others could look more appealing. This article explains how those catalysts connect to interest-sensitive growth stories and highlights 3 stocks from the screener that appear positively exposed to the current news backdrop.

Digital Turbine (APPS)

Overview: Digital Turbine is a mobile advertising and app distribution company that works with carriers, device makers, app developers, brands, and agencies to place apps and content directly on smartphones and run targeted ad campaigns across its On Device Solutions and App Growth Platform segments.

Operations: Digital Turbine generates most of its revenue from On Device Solutions at about US$382.4 million and the App Growth Platform at about US$185.7 million, with additional detail showing exposure across the United States and Canada, Asia Pacific and China, Europe, the Middle East and Africa, and Latin America.

Market Cap: US$1.6b

Digital Turbine sits at the intersection of mobile advertising, app distribution, and interest rate sensitive growth, which is why potential Fed policy shifts matter so much for this stock. The company is working to turn a currently loss making profile and negative return on equity into profitable growth. It is backed by a large on device install base, partnerships with Google Cloud, Databricks, and Orange, and a focus on higher quality campaigns and AI powered tools. At the same time, investors need to weigh ongoing dependence on carriers and OEMs, pressure from closed ecosystems like Apple and Google, and recent share price volatility. This is particularly relevant as analyst targets imply the market may already be pricing in a lot of progress.

Digital Turbine’s loss making profile and carrier dependence could be masking a bigger inflection point in its ad tech model. Review the 1 key reward and 1 important warning sign to see what might be quietly reshaping the story.

DigitalOcean Holdings (DOCN)

Overview: DigitalOcean Holdings runs a cloud platform that helps smaller and mid sized digital businesses and AI developers build, run, and scale applications, from basic websites through to GPU intensive AI and machine learning workloads. Its offering spans infrastructure, managed databases, Kubernetes, serverless tools, and AI focused services tailored to developers and software companies that want simplicity and predictable pricing.

Operations: DigitalOcean generates about US$948.6 million of revenue from internet software and services, with sales spread across Asia (US$217.8 million), Europe (US$247.2 million), the United States (US$147.0 million), North America excluding the US (US$234.4 million), and the rest of the world (US$102.2 million).

Market Cap: US$15.6b

DigitalOcean Holdings sits at the intersection of AI infrastructure and interest rate sensitive growth, which is why a more hawkish tone from the Fed can move the stock quickly. The company is leaning into AI inference and agentic workloads, with AI and ML revenue reportedly growing very strongly and supporting a broader push into higher value customers. At the same time, a premium P/E multiple, heavy reliance on external borrowing, and execution risk as it scales AI services mean expectations are high and missteps could hurt. For investors watching how Fed policy, AI demand, and a newer leadership team come together, there is more to DigitalOcean’s risk reward balance than the headline numbers suggest.

Accelerating AI and developer demand could be only half of the DigitalOcean Holdings story, especially with a premium P/E and leverage shaping expectations. Reviewing the analyst forecasts for DigitalOcean Holdings might reveal what the headline numbers are not telling you yet.

Altair Engineering (ALTR)

Overview: Altair Engineering provides software and cloud tools that help companies simulate, design, and optimize products, run high performance computing and apply data analytics and AI across industries such as automotive, aerospace, manufacturing, finance, and electronics.

Operations: Altair Engineering generates about US$637.3 million from Software and Related Services, US$25.0 million from Client Engineering Services, and US$3.5 million from Other revenue, with sales spread across the United States, Europe, Japan, and other Asia Pacific regions.

Market Cap: US$9.6b

Altair Engineering is positioned in a segment of high growth, recurring revenue software that often reacts quickly to interest rate expectations, which is why Kevin Warsh’s Fed signals can matter for this stock. The company has recently turned profitable and analysts expect strong earnings growth, supported by subscription based simulation, HPC, and AI products used in critical workflows from digital twins to multi cloud optimization. At the same time, the share price sits well above some fair value estimates, the P/S multiple is high versus peers, insider selling has picked up, and all liabilities rely on higher risk funding sources. As a result, sentiment could change fast if growth or margins disappoint. That mix of quality software, rich pricing, and balance sheet considerations is what makes the full Altair story worth a closer look.

Altair Engineering’s rich P/S, recent profitability, and reliance on higher risk funding make its current share price look like only part of the story, and the 2 key rewards and 1 important warning sign could reveal the twist investors are missing

The three interest rate sensitive growth stocks in this article are just the starting point. The full Interest Rate Sensitive Growth Stocks screener uncovers 36 more companies that carry similarly compelling growth profiles, volatility, and risk reward narratives. Use Simply Wall St to identify, filter, and analyze the specific catalysts, balance sheet traits, and earnings narratives that matter most so you can focus on the highest conviction ideas for your watchlist.

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If Digital Turbine or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Alternatives Before Momentum Flies Past?

New breakouts, fresh momentum, and under the radar stocks rarely stay quiet for long, and the best entry points can drop away quickly, so consider potential opportunities early rather than waiting for the crowd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.