AI Software Sales Could Soar 1,080%: 2 Brilliant AI Stocks to Buy Now

Artificial Intelligence (AI) is revolutionizing the software industry, with projected growth that could see sales soar by a staggering 1,080% by the end of the decade. This article explores the factors driving this growth and highlights two highly-rated AI stocks that investors should consider.

The projected growth of AI software sales is remarkable, with estimates suggesting a compound annual growth rate (CAGR) of nearly 50%. This rapid expansion is fueled by the increasing adoption of AI in various industries, from healthcare to finance. The growing demand for AI-driven solutions is pushing software sales to new heights.

Several factors contribute to this impressive growth forecast. Firstly, the increasing availability of data and advancements in AI algorithms have led to improved performance and accuracy in AI models. Secondly, the falling costs of AI hardware and cloud computing services have made AI more accessible and affordable for businesses. Lastly, the growing awareness of AI's potential benefits, such as enhanced decision-making, improved customer experiences, and increased efficiency, is driving its adoption.

Investors looking to capitalize on this trend should consider Datadog (DDOG) and ServiceNow (NOW), two AI stocks that come highly rated by Wall Street. Both companies have integrated AI into their software offerings, providing innovative solutions to their customers.

Datadog, a leader in observability software, has developed an AI engine called Watchdog. This AI-powered platform helps businesses monitor, analyze, and troubleshoot performance problems across their IT infrastructure. By detecting anomalies, surfacing insights, and automating root cause analysis, Watchdog expedites incident resolution and improves overall system performance.

ServiceNow, a market leader in digital workflows, has been building AI into its software for years. Its platform includes products for IT service management, customer workflows, employee workflows, and finance and supply chain workflows. ServiceNow's AI capabilities, such as predictive intelligence, AI search, and virtual agents, automate and streamline business processes, leading to increased efficiency and cost savings.

The financial performance and growth prospects of both Datadog and ServiceNow have contributed to their high ratings on Wall Street. Datadog's second-quarter financial results exceeded analysts' expectations, with revenue increasing 27% and non-GAAP earnings jumping 48%. ServiceNow also reported strong second-quarter results, with revenue increasing 22% and non-GAAP net income increasing 32%. Both companies have a strong presence in their respective markets and are well-positioned to capitalize on the growing demand for AI-driven solutions.

In conclusion, the projected growth of AI software sales is a compelling investment opportunity for investors. By focusing on AI stocks like Datadog and ServiceNow, investors can capitalize on the rapidly growing demand for AI-driven solutions. These companies' innovative AI integration, strong financial performance, and high Wall Street ratings make them attractive options for investors looking to benefit from the AI revolution.