AI Stocks To Watch With Datadog Atlassian And SentinelOne In Focus

Artificial intelligence is sitting at the center of market attention, as energy driven inflation risks, tight central bank policy and shifting trade patterns keep pressure on traditional growth stories. While oil prices, bond yields and tariff headlines move daily, AI related spending on chips, software, cloud and large language models is still a key focus for many companies and investors. This article uses an AI Stocks screener that targets businesses directly tied to the ChatGPT and broader AI build out, and highlights 3 stocks from that list that many investors are watching closely right now.

Atlassian (TEAM)

Overview: Atlassian is a Sydney based software company that builds tools like Jira, Confluence, Trello and Loom to help teams plan projects, share knowledge, manage support requests and coordinate software development, with newer products such as Rovo using AI to assist with search, chat and automated tasks across this workflow.

Operations: Atlassian generates about US$6.2b in revenue from Software & Programming, with sales spread across the United States, Europe, Asia Pacific and the rest of the Americas, and its largest single country exposure in the US at roughly US$2.6b.

Market Cap: US$24.5b

Atlassian sits at the intersection of AI and cloud workflows, as it weaves AI agents and features into tools that millions of developers and knowledge workers already rely on. The company is currently loss making. Analysts expect a shift to profitability over the next few years, helped by higher value cloud subscriptions and AI upsells, while its P/S multiple is below many peers in high growth software. On the other side of the ledger, heavy reliance on external borrowing, insider selling and execution risks around complex cloud migrations and AI monetization mean the path is not risk free. The key question is whether Atlassian’s AI heavy platform can turn this tension into durable cash generation and higher margins.

Atlassian’s shift from loss making tools vendor to an AI centered workflow platform is only half the story investors see on the surface; the 3 key rewards and 2 important warning signs may reveal what is quietly driving that tension

Datadog (DDOG)

Overview: Datadog runs a cloud based observability and security platform that lets companies monitor how their applications, infrastructure and data are performing in real time, including AI and large language model workloads. Its tools bring metrics, logs, traces and security signals together so engineering and security teams can keep services reliable, manage costs and respond quickly when issues appear.

Operations: Datadog generates about US$3.7b in revenue from Information Technology (IT) Infrastructure, with roughly US$2.5b coming from the United States and the rest spread across international markets.

Market Cap: US$93.7b

Datadog is attracting attention because it sits at the intersection of AI heavy cloud workloads, security needs and cost control. Its rich valuation and modest 3.7% profit margin leave little room for disappointment. Rapid earnings and revenue growth forecasts, repeated analyst target hikes and recent AI focused moves such as GPU monitoring and the Adaptive ML acquisition are among the reasons many investors view Datadog as a core AI infrastructure play. At the same time, customer concentration, intense competition and insider selling contribute to an elevated risk profile. A key consideration is whether the current price reflects both the AI related potential and the possibility that growth or margins could fall short of expectations.

Datadog’s rich valuation and thin 3.7% margin only tell half the story; the analyst forecasts for Datadog could show how earnings expectations and AI workload demand are reshaping what risk really looks like here

SentinelOne (S)

Overview: SentinelOne is a Mountain View based cybersecurity company whose Singularity Platform uses artificial intelligence to automatically prevent, detect and respond to threats across endpoints, cloud workloads and identity systems, with products like Purple AI aimed at investigating and containing attacks with minimal human input.

Operations: SentinelOne generates about US$1.0b in revenue from Security Software & Services, with roughly US$635.7m from the United States and US$413.2m from international customers.

Market Cap: US$6.7b

SentinelOne operates at the intersection of AI security and cloud workloads, with AI native offerings such as Purple AI, AI SIEM and the Flex licensing model supporting multi product adoption and larger contracts as enterprises look to secure AI agents and cloud environments. Analysts point to an unprofitable business with losses, a P/S multiple above peers and revenue growth forecasts that are below some high growth thresholds. Investors also need to weigh partner reliance on groups such as AWS, heavier R&D spending and meaningful insider selling. At the same time, expanding AI alliances, recent product launches and integrations, and revenue that some models estimate is trading below certain fair value assessments are among the reasons many investors are watching SentinelOne within AI focused cybersecurity.

SentinelOne’s AI native cybersecurity story appears to be in its early stages, yet the market is already debating whether its losses, partner reliance and P/S premium leave much room for surprise. The analyst forecasts for SentinelOne hints at where expectations could be most off.

The three AI stocks in this article are just a starting point, and the full Artificial Intelligence/ AI Stocks screener has surfaced 202 more companies that are directly tied to chips, software, LLMs, cloud and the broader ChatGPT build out. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you, and then narrow that wider AI universe down to the highest conviction ideas.

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Seeking Fresh Alternatives Beyond These AI Stocks?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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