Datadog Benefits When AI Goes Into Production. Here’s Why You Should Buy DDOG Stock Now.

Wedbush Securities just came out with a bullish note on Datadog (DDOG) and added the name to its AI 30 list. Analysts believe the company is an excellent choice for investors betting on derivative beneficiaries of the AI boom.

Datadog’s bull thesis isn’t just the fact that AI infrastructure spending is going strong. The company initially offered infrastructure monitoring products but has now moved on to digital experience monitoring, software delivery, product analytics, AI observability, and similar services. This isn’t just a case of diversification. IT systems are becoming more and more complex with AI integration — and the more complex they become, the more they need Datadog’s products and services. Investors right now are focused on the supply shortages in building AI infrastructure. What they haven’t yet considered is that once that infrastructure is up and companies start using AI in production, they will need to scale up operations to make that possible. Datadog has an early-mover advantage to capture that market, whenever it shows up.