Wall Street Analysts Bullish on Datadog, Nvidia, SpaceX
Top analysts identify Datadog, Nvidia, and SpaceX as long-term buys despite market volatility from elections and ongoing concerns over AI spending costs.
As the market navigates a landscape defined by high-stakes U.S. midterm elections and ongoing geopolitical tensions, top Wall Street analysts are advising investors to look past the immediate volatility. Despite recent skepticism regarding the high costs associated with artificial intelligence, several highly-rated financial experts are doubling down on companies they believe will lead the next decade of growth. Based on research from TipRanks, which tracks the performance of over 12,500 analysts, professional sentiment is currently coalescing around three major tech and aerospace firms: Datadog, Nvidia, and SpaceX.
Datadog positioned for observability growth
Datadog, a platform focused on security and observability for cloud-based infrastructure, is set to report its third-quarter results on November 4. Bank of America analyst Koji Ikeda recently reaffirmed a buy rating on the stock, raising his price target from $305 to $335. Ikeda, who is ranked among the top 5% of analysts globally, suggested that the market is currently underestimating the potential of the company’s security products.
The push toward cloud migration and the rapid adoption of AI are creating a tailwind for Datadog. While the consensus among most analysts predicts revenue growth of approximately 29.1%, Ikeda estimates a slightly more conservative 28.7% for the upcoming quarter. He remains confident in the company's ability to capture a larger share of the expanding market.
“We think results will be supportive of our long-term thesis that Datadog is a strong share gainer in the rapidly expanding observability opportunity,”
said Ikeda. However, he noted that investors should stay mindful of concentration risks where a small number of large customers provide a significant portion of revenue.
Nvidia continues to lead the semiconductor race
Nvidia remains a central figure in the AI narrative, even as concerns about supply chain bottlenecks persist. Following the company’s GTC Berlin conference, Morgan Stanley analyst Joseph Moore reaffirmed a buy rating with a $300 price target. Moore indicated that the semiconductor giant is effectively managing hurdles related to land, power, and funding, turning these potential obstacles into competitive opportunities.
Key points from the Morgan Stanley analysis include:
High demand continues to outstrip the available supply of specialized AI hardware.
Supply chain agreements regarding packaging and testing are helping to close the gap.
Nvidia’s ‘Vera Rubin’ platform is gaining momentum heading into 2027.
While wafer supply from TSMC remains a bottleneck, the analyst expects this pressure to ease over time.
Moore’s optimism is backed by a 59% success rate on his previous stock ratings, with an average return of 23.4%.
SpaceX sees massive surge in AI-related revenue
Perhaps the most striking growth figures come from the aerospace sector. SpaceX recently reported third-quarter results that showed a massive leap in AI-related revenue, climbing from $813 million last year to $7.56 billion. This growth is largely attributed to wholesale spot deals for compute capacity, signaling that the company’s vertically integrated model is finding new utility beyond space transport.
Needham analyst Ryan Koontz reiterated a buy rating on the stock with a $250 price target. He highlighted that the company is planning to add 10 gigawatts of incremental capacity during 2027 to meet the rising demand for processing power.
“With increasing confidence on Starship re-use, we meaningfully increase our estimates,”
Koontz stated in his report. The analyst believes the company’s ability to scale quickly and manage its own hardware pipeline gives it a unique advantage over traditional tech firms.
What this means for the broader market
These analyst picks arrive at a time when the broader technology sector is facing scrutiny over its massive investments in artificial intelligence. Some investors worry that the heavy spending by big tech has yet to show a sufficient return on investment. However, these top-performing analysts argue that the "megatrend" of AI is still in its early stages and that the companies providing the essential infrastructure—whether through chips, software monitoring, or data center capacity—are the most likely to sustain long-term growth.
For those following the markets, these ratings serve as a reminder that professional research often prioritizes 2026 and 2027 growth targets over the current quarter’s fluctuations. While individual stock performance is never guaranteed, the high success rates of these specific analysts suggest their bullish outlooks carry significant weight in the financial community.
