20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

3) MongoDB, Inc. (NASDAQ:MDB)

Number of Hedge Fund Holders: 49

Average Upside Potential: 62.1%

MongoDB, Inc. (NASDAQ:MDB) provides a strong, flexible, and scalable database platform supporting AI and machine learning applications. The company’s robust technical capabilities make it well-placed for AI-powered applications, providing advantages in handling the diverse data types needed for AI workloads. With companies increasingly adopting AI technologies, MongoDB, Inc. (NASDAQ:MDB) is expected to benefit from this trend. Furthermore, the ongoing pivot towards cloud-based database solutions is expected to further support the company’s strengths with its Atlas service.

MongoDB, Inc. (NASDAQ:MDB)’s strong position in the ever-evolving DBaaS market, with Atlas demonstrating strong growth, reflects that the company is well-positioned to capitalize on the continued shift to cloud-based database solutions. The company’s database architecture provides a competitive edge for AI applications, placing it for strong growth with the expansion of AI technology. Even though SQL databases tend to excel in web 2.0 apps, they are not able to handle the varied data types utilized in AI, including source data and vector data, together with real-time operational data. MongoDB, Inc. (NASDAQ:MDB)’s ability to efficiently store and process this data, coupled with its low-latency performance, means that it is an ideal solution for AI developers.

ClearBridge Investments, an investment management company, released its Q1 2024 investor letter. Here is what the fund said:

“During the first quarter, we initiated a new position in MongoDB, Inc. (NASDAQ:MDB), in the IT sector. The company offers a leading modern database platform that handles all data types and is geared toward modern Internet applications, which constitute the bulk of new workloads. Database is one of the largest and fastest-growing software segments, and we believe it is early innings in the company’s ability to penetrate this market. MongoDB is actively expanding its potential market by adding ancillary capabilities like vector search for AI applications, streaming and real-time data analytics. The company reached non-GAAP profitability in 2022, and we see significant room for improved margins as revenue scales.”