Wall Street analysts back Datadog, Nvidia and SpaceX for long-term gains

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Datadog, Nvidia & SpaceX picks

Highlights

Bank of America raises Datadog's price target to $335 ahead of Nov. 4 Q3 results, citing strengthened software demand and AI-driven usage growth.
Morgan Stanley reaffirms Nvidia buy rating at $300 price target after GTC Berlin, highlighting competitive advantages and momentum despite ongoing TSMC 3nm supply constraints.
Needham reiterates SpaceX buy rating and $250 price target after posting 161% YoY Q3 2026 revenue growth, with Connectivity segment operating income at $2.37 billion and 195.2% AI revenue jump.

Analyst calls ahead of key catalysts

As reported by CNBC, the latest bullish analyst views center on three companies that are seen as positioned to benefit from durable technology spending and AI adoption over the long term.

Datadog is drawing support ahead of its third-quarter results due on Nov. 4. Bank of America analyst Koji Ikeda reiterates a buy rating on the stock and raises his price target to $335 from $305, citing industry checks and data that suggest infrastructure software demand is strengthening. He says AI is increasingly driving usage and growth, and describes Datadog, alongside Atlassian, as a top pick among companies that could see valuation gains if they show AI is supporting growth.

Ikeda estimates Datadog's third-quarter fiscal 2026 revenue growth at 28.7%, slightly below the Street consensus of 29.1%, but says the market is underestimating the growth prospects of the company's security products. He also points to a faster-growing total addressable market for observability, driven by enterprise AI expansion and the rapid ramp of consumer AI agents, while cautioning about concentration risk tied to large customers.

Nvidia is also benefiting from AI-led demand, according to Morgan Stanley analyst Joseph Moore, who reaffirms a buy rating and a $300 price target after attending the company's GTC Berlin conference. Moore says Nvidia continues to manage bottlenecks in supply chain capacity, land, power, shell and funding, and argues that all three areas are turning into opportunities for the chipmaker.

Although the Berlin event brings no major updates, Moore says it reinforces Nvidia's competitive advantages heading into 2027. He highlights momentum behind Vera Rubin and says the main focus remains on narrowing the gap between demand and supply, with substrate, packaging and testing agreements helping that effort, even as TSMC 3 nanometer wafer supply remains a key constraint that he expects to ease over time.

AI demand drives the broader investment case

SpaceX rounds out the group after reporting strong third-quarter results that prompt Needham analyst Ryan Koontz to reiterate a buy rating and a $250 price target. Koontz says the aerospace company's results exceed expectations and show that its vertically integrated business model is supporting large-scale growth.

He points to a 161% year-over-year increase in third-quarter 2026 revenue, while revenue in the Connectivity segment rises 69.5%. Koontz also says the segment generates operating income of $2.37 billion as subscribers increase to 13.6 million, underscoring the strength of the company's underlying operations.

Koontz further highlights 195.2% sequential growth in SpaceX's AI revenue, driven by wholesale spot compute deals. He says management is placing greater emphasis on its AI strategy and is optimistic about adding 10 gigawatts of incremental capacity during 2027, while growing confidence in Starship re-use leads the analyst to raise his estimates.

The three calls reflect a broader market preference for companies with visible exposure to AI infrastructure, software and computing demand. Even as investors remain cautious about elevated spending and geopolitical uncertainty, analysts are signaling that businesses with strong execution and expanding end markets could remain favored for long-term returns.

Our earlier coverage on the surge in U.S. AI data centers highlighted that the buildout is running into real-world constraints, including rising financing costs, construction delays and limited power availability. We noted that a meaningful share of planned projects may not be viable as investor sentiment cools and developers face cost overruns, community pushback and tighter access to capital. The key issue was shifting from AI demand itself to whether the industry can deliver new capacity on time and at sustainable economics.

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