Wedbush Adds Datadog, SK Hynix to AI 30 List

Wedbush Securities has added Datadog Inc (NASDAQ:DDOG) and SK Hynix (KRX: 000660) to its closely watched IVES AI 30 list, citing the memory super-cycle and AI observability as two of the most compelling themes in the current phase of the artificial intelligence buildout.

Rating Change

Wedbush did not announce any change in rating or price target for Datadog or SK Hynix; instead, it added them to the list of 30 leading AI companies. The list also includes Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL).

Analyst Rationale

Wedbush analysts believe we are in the 'third inning' of the AI revolution, where the focus shifts from infrastructure buildout to applications and services. The memory super-cycle is driven by surging demand for high-performance memory chips used in AI data centers, benefiting SK Hynix. Datadog benefits from the growing need for observability of applications and cloud infrastructure in the AI era.

Context

The addition comes after strong performance of AI stocks over the past year. Wedbush is known for its bullish stance on the AI sector, having previously raised price targets for several tech companies. Neither Datadog nor SK Hynix has commented on the inclusion.

What to Make of It

The addition of Datadog and SK Hynix to the AI 30 list reflects Wedbush's confidence in the continued growth of the AI sector, focusing on companies providing the infrastructure and tools necessary to run AI applications. Investors may view this as a positive signal, but actual company performance remains the key metric.