AI is expected to strengthen growth logic! Truist is optimistic about Snowflake (SNOW.US), MongoDB (MDB.US), and a number of other U.S. infrastructure software stocks.

In the past few months, multiple infrastructure software stocks have rebounded, partly attributed to positive factors related to artificial intelligence (AI), which prompted investment bank Truist to raise target prices for several companies. Reportedly, Truist raised the target price of Snowflake (SNOW.US) from $300 to $375, raised MongoDB (MDB.US) from $400 to $475, while maintaining a "Buy" rating for both stocks. The Truist analyst team, led by Miller Jump, stated in a detailed investor report released on Thursday: "During the earnings announcements, both JFrog (FROG.US) and Datadog (DDOG.US) emphasized that the company's revenue growth rate continues to accelerate under the influence of positive AI factors." They added, "With a significant rise in stock prices across the sector recently, we believe that companies with credible AI acceleration growth logic are still most likely to outperform in a more challenging short-term risk-return environment." The analysts further noted, "Although Snowflake is already a popular target in market consensus, we believe the stock still has room for continued growth. Our discussions with clients and partners over the past 90 days indicate that Snowflake is benefiting from the investment cycle of 'preparing data for AI,' and the adoption of CoCo is accelerating cloud migration projects." The analysts also mentioned, "While we still consider MongoDB a long-term beneficiary of AI, there is currently little evidence that AI workloads will significantly accelerate their growth this quarter. Therefore, following a substantial rise in the stock price recently, we are cautious about the potential volatility of the stock." Truist also raised the target price for GitLab (GTLB.US) from $30 to $40, and increased Atlassian (TEAM.US) from $160 to $185. Despite raising GitLab's target price, Truist maintained a "Hold" rating on the stock. GitLab is set to announce its earnings on September 1, with market consensus expecting adjusted earnings per share of $0.18 and revenue of $272.36 million. Analysts stated: "We expect GitLab's performance to meet market consensus expectations. Although the fiscal first quarter of 2027 showed solid fundamentals, we do not believe this quarter's results will meaningfully alleviate investor concerns over the contraction in seat-based billing and the sustainability of core demand trends." However, they noted, "GitLab provided a business update during the quarter, which we believe further clarifies the company's situation and serves as a positive signal for the potential turnaround of the entire business." Other companies that received target price increases include Elastic (ESTC.US), with the target price raised from $80 to $100, and PagerDuty (PD.US), with the target price raised from $11 to $13. Truist maintained a "Buy" rating for both stocks.