We recently compiled a list of the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts. In this article, we are going to take a look at where MongoDB, Inc. (NASDAQ:MDB) stands against the other AI stocks.

Consumer Electronics Show (CES) 2025 revolved around AI. If not, it’s all that exhibitors could show. Talking about the highlight of the show, it was undoubtedly the keynote from Jensen Huang. The keynote included new products to advance gaming, autonomous vehicles, robotics, and agentic AI. Huang kicked off his talk by reflecting on the company’s 3-decade journey. Later on, he highlighted several significant advancements.

Takeaways From CEO Jensen Huang’s Keynote at CES 2025

As per Huang, AI has been advancing at an ‘incredible pace.’ It started with perception AI, meaning understanding images, words, and sounds. Then it came to generative AI, meaning creating text, images, and sound. And now, it’s the era of physical AI, meaning AI that can proceed, reason, plan, and act. The AI giant introduced GeForce RTX 50 Series GPUs, which are powered by Blackwell architecture. These GPUs provide significant improvements in AI-driven rendering, enhancing gaming and creative workflows. Furthermore, Huang unveiled “Cosmos,” which is a suite of foundational AI models capable of generating photorealistic video. The models have been designed in such a way that train robots and automated systems more efficiently, further advancing robotics and autonomous technologies.

The company and its partners have rolled out AI Blueprints for agentic AI, which includes PDF-to-podcast for efficient research and video search and summarization for assessing significant quantities of video and images — allowing developers to build, test, and run AI agents anywhere.

Agentic AI- Road Ahead in 2025

TechInformed interviewed experts from leading technology companies to explore predictions about Agentic AI. As per Steven Webb, UK chief technology and innovation officer, Capgemini, 2025 will see wider adoption of small language models (SLMs) and AI agents as an era of Agentic AI is fast approaching. Using multiple SLMs throughout a toolchain is expected to play a critical role in the AI evolution. This will include going beyond the already familiar LLMs such as GPT.

Furthermore, Alan Jacobson (chief data and analytics officer at Alteryx) believes that 2025 will see the rise of Gen AI agents used to solve problems. This is an approach that is made possible by reducing costs and improving the performance and speed of LLMs. Frameworks for orchestrating Agentic AI work are expected to emerge. Notably, a large percentage of use cases are expected to start to employ this approach.

Our Methodology

To list the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts, we conducted extensive research and sifted through numerous online rankings. After getting an initial list of 25-30 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of 14^th January. We also mentioned hedge fund sentiments around each stock, as of Q3 2024.

At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

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.”

Overall MDB ranks 3rd on our list of the best AI stocks to buy according to analysts. While we acknowledge the potential of MDB as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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