15 Hot Tech Stocks to Buy Right Now

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5. MongoDB Inc. (NASDAQ:MDB)

Upside Potential: 45%

Number of Hedge Funds: 49

MongoDB Inc. (NASDAQ:MDB) is a developer data platform company that provides modern database platforms and related services for developers. The company’s flagship product, MongoDB Atlas, is a fully managed multi-cloud developer data platform that allows organizations to build and scale applications quickly and efficiently. According to the company’s last annual report, IDC estimates the data management software market, the company’s primary market, is projected to grow from $94 billion in 2023 to approximately $153 billion in 2027, with a CAGR of 13%.

The investment management company, Montaka Global Investments, stated the following regarding MongoDB Inc. (NASDAQ:MDB) in their Q4 2024 investor letter:

“As a database provider for large production-ready applications, MDB has suffered of late because software developers have overwhelmingly focused on small, experimental AI-based ‘proof of concepts’ rather than production deployments. We expect this cycle to turn in 2025 and beyond, and its possible (though not certain) that demand for MDB accelerates materially.

There are strong arguments for why MDB should thrive in a world in which AI is infused into applications. These include – a) As one of the largest and well-established database offerings available for ‘unstructured data’, MDB should benefit from new AI applications on the basis that 80-90% of the world’s data is inherently unstructured. B) Relational databases (e.g. Oracle) that handle structured data that align to a fixed schema, lack the flexibility required to handle the rapid changes and evolutions that are taking place in AI. C) New AI coding agents can now automate the (previously too time consuming) transfers of data from a relational database to a more flexible MDB. Given MDB’s market share of the overall database market is only approximately 2% today, small changes in market share would likely translate into outsized percentage gains in MDB’s value.”

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