Generative AI software sales expected to surge 2,790% by 2032, analysts favor Microsoft and Datadog

Sales of generative AI software are expected to rise dramatically, with spending projected to increase by 2,790% to nearly $320 billion by 2032. This surge follows the introduction of ChatGPT in November 2022, which sparked significant interest in AI technologies. Microsoft and Datadog are highlighted as strong investment options, with both companies receiving high ratings from Wall Street analysts. Microsoft has a 91% buy rating among analysts, while Datadog has an 88% buy rating, indicating strong confidence in their growth potential. Microsoft reported a 16% revenue increase to $65.6 billion in its latest quarter, driven by strong cloud and advertising sales. Datadog also performed well, with a 26% revenue rise to $690 million, as it expands its offerings in observability software and AI solutions.