The artificial intelligence (AI) industry has been flooded with numerous companies claiming the AI title in recent years. This has made it challenging for investors to determine which AI offerings are worth their time and money. This article will highlight three AI software stocks with rapidly increasing customer growth that are worth buying in March 2024: Datadog (NASDAQ:DDOG), Fortinet (NASDAQ:FTNT), and Cisco Systems (NASDAQ:CSCO).
Datadog has risen to success in recent years by prioritizing cloud-based monitoring and analytics platforms. The company’s proprietary cloud software aids developers in identifying software errors and monitoring user experience. Datadog’s latest AI initiative, Bits AI, serves as a direct support tool for developers who need real-time queries and summaries of code and data stacks.
The company has experienced substantial growth, adding 79 additional customers who each pay over $1 million annually. It has also seen a 27% year-over-year (YOY) increase in revenue, reaching $2.13 billion.
Fortinet, on the other hand, specializes in developing and selling a variety of security solutions and software to protect businesses and organizations from cyber threats. The company’s main product line includes firewalls that provide customers with a primary line of defense against hacking and ransomware attacks. Fortinet’s AI service, FortiAI, is a deep-learning solution designed to streamline the investigation of cyber attacks.
The company performed solidly in 2023, with a 10% increase in revenue and an 8.5% increase in service billings.
Cisco Systems, a prominent player in the computer networks sector, has made significant strides to maintain its growth. This includes a new collaboration with Nvidia (NASDAQ:NVDA) and the acquisition of Splunk. Cisco and Nvidia plan to merge AI with highly secure Ethernet-based infrastructure, and have enhanced Webex with AI-powered meetings and virtual desktop infrastructure.
Cisco’s revenues rose to $57 billion in 2023, marking an 11% annual growth.
In conclusion, Datadog, Fortinet, and Cisco Systems are three AI software stocks with rapidly growing customer bases that investors should consider buying in March 2024. These companies have shown strong growth and direct AI applications, making them desirable investment options.
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