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BofA Raises Price Target on Datadog (DDOG) to $150 Amid Strong AI Momentum

Datadog, Inc. (NASDAQ:DDOG) is one of the 10 AI Stocks in the Spotlight. On June 18, BofA analyst Koji Ikeda raised the firm’s price target on the stock to $150 from $138 and kept a “Buy” rating on the shares. The firm has termed Datadog as a “top pick” for the second half of 2025, backed by its strong execution, healthy demand trends, and growing role in AI infrastructure.

“We believe it’s positioned to drive durable 20%+ revenue growth and 20%+ FCF margins over the long-term (i.e., Rule-of-40+), which is an attractive investment trait.”

-BofA analysts wrote.

The analysts further affirmed that they are confident about Datadog based on positive checks at the company’s annual customer conference, DASH, along with positive results from the firm’s recent Datadog survey. Both suggest strong customer momentum. The firm believes Datadog has the potential to drive 20%-plus revenue growth as well as 20%-plus free cash flow margins over the long term.

A financial analyst seated in front of a stacked board of financial statements.

“75% of customers we spoke with at DASH are planning to spend more with Datadog.”

According to the firm, the company is also benefiting from the AI boom.

“Revenue generated from AI-natives is already notable, with 8.5% of ARR coming from them (+200% y/y, we estimate).” BofA said.

As more traditional enterprises launch AI-enabled experiences, the analysts anticipate broader adoption and benefits from the AI boom.

Datadog also unveiled multiple new products at DASH, with the firm anticipating that they have the potential to become $100 million+ ARR contributors. These include tools aligned with AI agents, automation, and deep observability into the AI tech stack.

“We believe the strong execution trend will continue driving potential upside to our/Street forecasts.”

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Getting Wall Street’s Attention. 

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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