Investors are advised to buy Datadog and Advanced Micro Devices due to strong growth potential

From Nasdaq: 2025-03-13 08:00:00

The recent stock market pullback has investors nervous, especially in artificial intelligence stocks. Factors contributing to the dip include advances by DeepSeek AI and economic uncertainty. Despite this, the AI market is projected to grow from $233 billion in 2024 to $1.77 trillion by 2032, making it a good opportunity to invest in underpriced AI stocks.

Two stocks, Datadog and Advanced Micro Devices, offer up to 124% upside potential according to Wall Street analysts. Datadog helps businesses monitor data across platforms, while AMD is well-positioned to capture a larger share of the GPU market. Despite recent declines, both companies have strong growth potential and could be smart investments.

Datadog’s AI-native customers are growing rapidly, with its AI integrations proving valuable across various industries. Datadog’s observability services and AI-powered assistant, Bits AI, have seen increased adoption, with potential for further growth. Datadog trades at a reasonable valuation and could see strong earnings growth as it expands its offerings.

AMD’s outlook may have disappointed investors, but analysts see significant upside potential. With a focus on data center AI accelerators and competitive CPU offerings, AMD could capture a larger market share in the coming years. Trading at a low price relative to growth potential, AMD presents an attractive investment opportunity.

For investors looking for the best stocks to buy now, Datadog and AMD offer strong potential growth. The Motley Fool Stock Advisor service provides insights on top stock picks, with a track record of outperforming the S&P 500. Consider joining Stock Advisor to access the latest recommendations and maximize investment returns.



Read more at Nasdaq: 2 Artificial Intelligence (AI) Stocks to Buy Before They Soar 82% and 124%, According to Certain Wall Street Analysts