Analysts see long-term potential in Datadog, Atlassian and Nvidia
Bank of America and Morgan Stanley maintain purchases, but point to concentration of customers and production bottlenecks as points of attention
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM CNBC MARKETS · 2 MIN
In the midst of earnings season, two large investment banks remain optimistic about stocks linked to artificial intelligence. According to CNBC Markets, Koji Ikeda, from Bank of America, reiterated his buy recommendation for Datadog and raised the target price from US$305 to US$335. Joseph Moore, from Morgan Stanley, reaffirmed the purchase of Nvidia with a target price of US$300, after GTC Berlin.
Datadog works with observability and security using AI, and its results for the third quarter of fiscal year 2026 are scheduled for 4/11. Ikeda estimates revenue growth of 28.7% this quarter, slightly below the 29.1% market consensus, according to CNBC Markets.
The analyst also cites Datadog and Atlassian as his main choices, but warns about the risk of concentration on large clients. CNBC Markets recalled that Ikeda occupies 673rd position among more than 12,500 analysts in the TipRanks ranking, with a success rate of 55% and an average return of 10.9%. This ranking classifies professionals based on past performance, which does not guarantee future results.
In the case of Nvidia, Moore assesses that Vera Rubin is gaining traction, but that the details of Rubin Ultra were below expectations. For him, the main bottleneck is the 3 nanometer wafer manufactured by TSMC. Demand exceeds supply, and, according to CNBC Markets, the focus is on closing this gap with substrate, packaging and testing agreements.
The situation occurs amid pressure factors highlighted by CNBC Markets itself: the earnings season, tensions in the Middle East, the mid-term elections in the United States and high spending on AI.
On the other side, the Investing.com headline reports that Goldman Sachs points to interest rates and AI disruption as long-term risks to equity demand.
What changes for the investor
For those who follow Datadog and Nvidia, the analysts' message is confidence in the demand for AI, but the material also shows points of attention: the concentration of customers, the bottleneck in chip production and the possibility of interest rates and technological disruption weighing on shares in the long term. Datadog's balance sheet, scheduled for 11/4, will serve as a test of Ikeda's revenue estimate, and the evolution of substrate, packaging and testing agreements will indicate whether Nvidia can meet demand. These are variables to monitor. This article does not provide a purchase or sale recommendation or price projections.
Automatically translated from Portuguese.
