Loop Capital Maintains 'Buy' Rating on Datadog, Inc. (DDOG); Raises PT

Given the company’s popularity among hedge funds and the bullish sentiment surrounding it, Datadog, Inc. (NASDAQ:DDOG) makes it to our list of the Top 10 AI Infrastructure Stocks to Buy Now.

Loop Capital increased its price target on Datadog, Inc. (NASDAQ:DDOG) from $160 to $200, maintaining a ‘Buy’ rating. The analyst attributed this to the expansion of DDOG’s product portfolio and the growth of its total addressable market. Furthermore, the company’s adoption of innovative tools like Flex Logs and its entry into enterprise AI-native clients were also cited as key growth drivers.

The company’s valuation is supported by its other strategic growth initiatives. On May 5, 2025, Datadog, Inc. (NASDAQ:DDOG) acquired Eppo, a feature flagging and experimentation platform, expanding its AI, Product Analytics, experimentation, and feature flag capabilities. Meanwhile, on June 10, 2025, the company disclosed its new capabilities in its log management portfolio, which will enable cost optimization at scale for organizations, also allowing them to meet tight data retention, auditability, and data residency requirements of regulated sectors. Having reported a 25% YoY increase in revenue and growth in its AI-native customer base, the company is poised for future growth with its ongoing strategic growth initiatives.

Datadog, Inc. (NASDAQ:DDOG), a U.S.-based software company, offers AI-native observability, application monitoring, and cloud security tools through a SaaS-based data analytics platform.

While we acknowledge the potential of DDOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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