Is Datadog (DDOG) an AI Stock Investors Should Be Watching?

Datadog, Inc. (NASDAQ:DDOG) is one of the AI Stocks Every Investor Should Watch. On October 9, UBS analyst Karl Keirstead raised the price target on the stock and raised its price target to $189.00 from $165.00. The rating affirmation follows after analysts at UBS attended the New York-based user conference for emerging competitor ClickHouse.

The firm particularly focused on understanding how OpenAI was using ClickHouse to understand the dynamics of their relationship. This is important considering OpenAI is Datadog’s largest customer, and with an upcoming contract renewal on the way, it is important to understand how OpenAI and ClickHouse’s relationship may impact or even displace OpenAI’s use of DDOG.

“We attended the NYC-based user conference for emerging Datadog/Snowflake rival ClickHouse, to better assess ClickHouse as a Datadog rival but specifically to understand how OpenAI – by far Datadog’s largest customer with a contract renewal coming up – was also using ClickHouse and to what extent this could displace OpenAI’s use of Datadog. Bottom line, we conclude that indeed ClickHouse is taking share in logs from Datadog, but that does not preclude OpenAI from renewing, and Datadog usage could still grow thereafter. At a CY26 revs/FCF multiple of 13x/50x, we remain Buy-rated.”

Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.

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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