Wall Street Analysts Back Datadog, Micron, and Lam Research for AI-Driven Growth

CNBC reported Sunday that three equities are drawing strong conviction from Wall Street’s highest-ranked analysts as AI infrastructure spending continues to accelerate. The picks, highlighted via performance-tracking platform TipRanks, span observability software, memory chips, and semiconductor equipment.

Datadog Gets a Raised Price Target From Bank of America

Bank of America analyst Koji Ikeda lifted his price target on Datadog (DDOG) to $260 from $225 after attending an investor webinar hosted by global consulting firm Cognizant. Ikeda retained his buy rating on the stock. He said the session reinforced his view that best-in-class infrastructure software providers stand to capture growing enterprise demand. As businesses migrate workloads to the cloud and embed AI more deeply, Ikeda argued that complexity will rise and demand for tools like Datadog’s observability and security platform will follow. The company’s first-quarter revenue topped expectations, and its second-quarter revenue growth guidance exceeded 30%. Ikeda flagged new large AI-linked deals as evidence of Datadog’s entrenched role in enterprise deployments.

Micron Draws a Strikingly Large Price Target Hike

UBS analyst Timothy Arcuri made a dramatic upward revision to his price target on Micron Technology (MU), moving it to $1,625 from $535 while keeping a buy rating in place. Arcuri said the memory market is undergoing structural transformation driven by AI workloads, and he expects the market to begin assigning Micron a more normal earnings multiple as that shift becomes clearer. His research into long-term supply agreements across the industry found that these deals now carry fixed-volume commitments and partially fixed pricing, a meaningful change from older volume-only arrangements. He estimated that up to 30% of double data rate memory volumes could soon be locked in near current price levels. Arcuri projects Micron will generate $400 billion in free cash flow between 2027 and 2029, with earnings per share staying comfortably above $100 throughout that window. He ranks second among more than 12,200 analysts tracked by TipRanks, with an 81% profitable rating rate.

Why AI Infrastructure Spending Is Reshaping Analyst Models

The backdrop for all three calls is a broader shift in corporate confidence. The most recent earnings season largely put to rest fears that hyperscaler AI spending was approaching a ceiling. Major cloud providers have signaled continued capital expenditure growth, lending credibility to analysts who are extending their earnings forecasts further into the decade. Lam Research (LRCX), the third stock flagged by CNBC, serves the semiconductor fabrication layer that underpins AI chip manufacturing, making it a downstream beneficiary of the same infrastructure buildout driving Datadog and Micron higher.

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