We recently published a list of 10 AI Stocks Getting Wall Street’s Attention Right Now. In this article, we are going to take a look at where Datadog, Inc. (NASDAQ:DDOG) stands against other AI stocks that are getting Wall Street’s attention right now.
Investors in the artificial intelligence trade have been frantic ever since the tariff frenzy started. Particularly on April 2, dubbed Liberation Day by President Donald Trump, the administration announced sweeping tariffs that led to significant market volatility and a sharp downturn in stock indices.
While the President may strive to make the United States the “world capital” of artificial intelligence, the aggressive trade and tariff moves that have since followed have been threatening the crucial technology and weakening competition with China.
Executives and experts in AI and data center construction have been worried about how trade levies would significantly increase the cost of constructing, equipping, and operating the data centers that will, in turn, power AI development.
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Fast forward to earnings reports from some of the Big Tech, and it can be noted how investors have been worried more than necessary about the AI trade. Meta and Microsoft, in particular, reported strong quarterly results that demonstrated how artificial intelligence progress won’t necessarily slow amid economic turmoil.
“Few stocks are truly immune to Trump tariffs [and] trade war, but AI is a lot less impacted than investors currently believe. We’re early in a very steep growth curve right now, and that goes for AI infrastructure.”
-Jed Ellerbroek, portfolio manager at Argent Capital Management.
What happens next to AI stocks largely depends on what’s next for tariffs. If it’s better than expected, these and other AI stocks may climb and lift valuations. On the other hand, if tariffs seem high, these stocks could fall further.
Nevertheless, strong companies, particularly the likes of Nvidia and Palantir, are likely to win over the longer term due to their smart innovations. According to Wells Fargo’s Christopher Harvey, it may be time for investors to reenter the trade.
“The group’s risk/reward today is much more attractive than a year ago. We remain in a durable AI investment super cycle.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a laptop with a software engineer coding on the monitor.
Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 83
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products. On May 5, the company announced that it had acquired Eppo, a feature flagging and experimentation platform, to enhance its existing Product Analytics suite. The acquisition will enable Datadog to create a full end-to-end product analytics solution on one platform with the unified approach allowing engineers to track code changes with feature flags, data science leaders and product managers to help design and measure impact with experiments, and business analysts to use Datadog’s Product Analytics suite to understand overall product usage and business outcomes. With the AI workload growing, Eppo’s experimentation capabilities will help developers safely scale complex systems and accelerate the safe roll-out of changes.
“The use of multiple AI models increases the complexity of deploying applications in production. This complexity makes it difficult for developers to quantify the business impact of different models, agent behaviors, prompts or UI changes. Experimentation solves this correlation and measurement problem, enabling teams to compare multiple models side-by-side, determine user engagement against cost tradeoffs and ultimately build AI products that deliver measurable value.”
-Michael Whetten, VP of Product at Datadog.
Overall, DDOG ranks 6th on our list of AI stocks that are getting Wall Street’s attention right now. While we acknowledge the potential of DDOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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