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DA Davidson Labels SentinelOne (S) Undervalued but Maintains Cautious Stance Pending Growth Stabilization

SentinelOne Inc. (NYSE:S) is one of the AI stocks under $20 to buy now. On December 5, DA Davidson lowered the firm’s price target on SentinelOne to $16 from $19 and kept a Neutral rating on the shares. The firm highlighted that the company delivered a strong FQ3 2026 performance, with its $1.055 billion in annual recurring revenue surpassing the consensus estimate of $1.051 billion. DA Davidson noted that the stock is currently undervalued, but an upward shift in valuation is unlikely until there is clear evidence that growth has stabilized.

In the said third quarter, SentinelOne Inc. (NYSE:S) delivered $259 million in revenue, which represented a 23% year-over-year increase. Key growth indicators remained robust, with ARR climbing 23% to $1.055 billion and RPO surging 35% to reach $1.3 billion. International expansion was a major highlight, with revenue from outside the US growing 34% to account for 40% of the total business.

SentinelOne continues to use its Purple AI and Flex licensing models to drive platform consolidation. Purple AI has seen a rapid 40% attach rate among new licenses, while the Flex model is enabling larger, multi-solution deals by allowing customers to consume the Singularity platform more dynamically. During the quarter, the company closed the $225 million acquisition of Observo AI, adding a policy-driven data pipeline to its stack, and completed the acquisition of Prompt Security for $180 million.

For the full FY2026, SentinelOne Inc. (NYSE:S) expects total revenue of ~$1.001 billion, which would be a 22% year-over-year growth.

SentinelOne Inc. (NYSE:S) operates as a cybersecurity provider in the US and internationally. The company’s Singularity Platform delivers an AI-powered autonomous threat prevention, detection, and response capabilities across an organization’s endpoints, cloud workloads, and identity credentials.

While we acknowledge the potential of S to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than S and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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.

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  • 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.

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