Truist Raises MongoDB (MDB) PT to $500, Highlighting Persistence in AI Valuation Gap

MongoDB Inc. (NASDAQ:MDB) is one of the hot tech stocks to invest in. On January 7, Truist raised the firm’s price target on MongoDB to $500 from $450 and kept a Buy rating on the shares. This decision was made as Truist noted a deepening divide in the AI sector: while seat-based business models have plummeted by an average of 34% over the last year, other AI-related firms have climbed 24%. This valuation gap is expected to persist through 2026, though the firm suggested that some of last year’s laggards may be primed for a recovery.

In its FQ3 2026 earnings report, MongoDB Inc. (NASDAQ:MDB) recorded $628 million in revenue, which was a 19% year-over-year increase. This growth was fueled by MongoDB Atlas, which saw a 30% revenue increase. Atlas now accounts for 75% of the company’s total revenue, reflecting an acceleration in cloud adoption compared to prior quarters.

MongoDB also provided optimistic guidance for the remainder of the fiscal year. For FQ4 2026, the company expects revenue between $665 and $670 million, representing 21% to 22% growth. For FY2026, revenue is projected to be between $2.434 and $2.439 billion. CFO Michael Berry indicated that the company will continue to invest in engineering and sales capacity into FY2027.

MongoDB Inc. (NASDAQ:MDB), together with its subsidiaries, provides a general-purpose database platform worldwide.

While we acknowledge the potential of MDB 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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Disclosure: None. This article is originally published at Insider Monkey.