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

Core Viewpoint - The recent sell-off in AI stocks presents a buying opportunity for investors, particularly in companies like Datadog and Advanced Micro Devices (AMD) that show significant upside potential amid market fluctuations [1][2][3]. Group 1: Datadog - Datadog is positioned to benefit from the increasing shift of businesses to cloud services and AI integrations, with an estimated upside of 82% according to analysts [4][5]. - The company has seen strong growth in "AI-native customers," which accounted for 6% of its annual recurring revenue in Q4, doubling from the previous year [6]. - Datadog's AI features, including its LLM observability service and the Bits AI assistant, enhance its value proposition, making its platform more accessible and useful for businesses utilizing AI [7][8]. - The stock trades at an enterprise-value-to-revenue multiple of about 13, which is relatively low considering its potential for 20% top-line growth in the coming years [9]. Group 2: Advanced Micro Devices (AMD) - AMD is expected to capture a larger share of the growing GPU market, with analysts projecting a 124% upside based on a price target of $225 [10][12]. - The company anticipates significant growth in its data center GPU market, potentially reaching $500 billion by 2028, with AMD aiming for a 10% market share [12][13]. - Despite recent sales declines, AMD's competitive x86 CPU chips are gaining market share, with over 50% share among its CPU data center customers [14]. - Analysts forecast 23% revenue growth for AMD this year, with expectations of 35% earnings growth by 2026, indicating strong growth potential at a reasonable valuation of 21 times forward earnings [15][16].