10 Trending AI Stocks on Wall Street’s Radar

5. Datadog, Inc. (NASDAQ:DDOG)

Number of Hedge Fund Holders: 71

Datadog, Inc. (NASDAQ:DDOG) has established itself as a leading provider of cloud-based monitoring and analytics solutions in the observability market. Likewise, on January 22nd, Guggenheim analyst Howard Ma reiterated a Hold rating on the stock. The rating comes as the company has become a key player in cloud monitoring and analytics by integrating and automating infrastructure monitoring with artificial intelligence.

The launch of LLM Observability, a tool for managing and monitoring AI applications, is one of Datadog’s major efforts in this field. This product meets the increasing need for solutions capable of managing the intricacies of large language models and other AI systems. Datadog, Inc. (NASDAQ:DDOG) has also introduced Bits AI, a feature designed to expedite incident response and cleanup procedures. These AI-driven innovations are creating new market opportunities. With AI-related annual recurring revenue (ARR) rising to 6.0% of total ARR in the third quarter of 2024 from 4.0% in the previous quarter, analysts have observed that Datadog’s exposure to AI is starting to positively affect growth.