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Artificial Intelligence (AI) Stocks Poised for Monster Growth in Bull Market: Top Picks for Long-Term Investors

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“The future of investing lies in the hands of artificial intelligence, and these two AI stocks are poised to skyrocket in the upcoming bull market, offering investors a golden opportunity to secure monster growth potential that can stand the test of time.”

The S&P 500 is currently down 12% from its all-time high, which means it is not far from entering bull market territory. This presents a great opportunity for investors to consider building a portfolio of artificial intelligence (AI) stocks. The advancements in AI are expected to contribute trillions of dollars to the global economy, making it a major driver of the next bull market.

One AI stock with significant growth potential is The Trade Desk. This company operates the leading independent demand-side platform in the ad tech industry. Its software helps media buyers create, measure, and optimize data-driven ad campaigns across various digital channels. Unlike its competitors, such as Alphabet, The Trade Desk avoids conflicts of interest as it does not own media content. This transparency has allowed the company to build an advanced data marketplace, offering industry-leading AI capabilities. The Trade Desk reported impressive results in the second quarter, with revenue up 23% and net income improving significantly. Analysts expect the company to continue gaining market share and grow revenue at a rate of 22% annually over the next five years.

Another AI stock to consider is Datadog, which provides observability and cybersecurity software to development, operations, and security teams. The company’s platform integrates data from across the corporate technology stack to provide real-time visibility into crucial applications and infrastructure. Datadog leverages AI to automate anomaly detection and root-cause analysis, speeding up problem remediation. The company has been praised for its broad functionality and powerful AI, positioning it as a leader in various observability-software verticals. In the second quarter, Datadog reported solid results, including an increase in customer count and revenue. The company has a track record of developing new products and has positioned itself as a key player in the generative AI market. Analysts expect Datadog to grow revenue at a rate of 31% annually over the next five years.

Both The Trade Desk and Datadog offer significant growth potential in the AI sector. Risk-tolerant investors should consider starting with a small position in these stocks and adding to it during pullbacks. According to analysts, the current valuations of both companies are reasonable considering their growth prospects. It’s an exciting time for AI stocks, and investors should seize the opportunity presented by the upcoming bull market.

Disclosure: Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Datadog, and The Trade Desk. The Motley Fool has a disclosure policy.

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