Certain Wall Street analysts predict big returns for Datadog and Arm Holdings in AI stocks

From Nasdaq: 2025-01-09 04:22:00

The U.S. stock market had a great year in 2024, with the S&P 500 up 23%, Dow Jones up 13%, and Nasdaq up 29%. Morgan Stanley analysts predict big returns for Datadog and Arm Holdings as AI continues to drive growth.

Morgan Stanley sets a bull-case target of $205 for Datadog and $300 for Arm, implying 45% and 108% upside, respectively. Datadog’s observability software and AI focus, along with Arm’s CPU architecture dominance, make them attractive long-term investments.

Datadog’s adjusted earnings are expected to grow by 13% annually through 2026, while Arm’s are projected to increase by 33% annually through fiscal 2027. Both companies face high valuations, but their growth potential remains strong.

Investors should watch for buying opportunities in Datadog and Arm, as AI and technology continue to drive their growth. While short-term returns may be uncertain, long-term prospects for both companies are promising.

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Disclosure: The author’s views expressed in this article may not reflect those of Nasdaq, Inc. Consult a financial advisor before making investment decisions.



Read more at Nasdaq: 2 AI Stocks to Buy Before They Soar Up to 108% in 2025, According to Certain Wall Street Analysts