We recently compiled a list of the 10 Unsexy AI Stocks According to Goldman Sachs. In this article, we are going to take a look at where MongoDB, Inc. (NASDAQ:MDB) stands against the other unsexy AI stocks.

Investment bank Goldman Sachs recently organized its Communacopia + Technology Conference, an annual event that brings together innovators and business leaders from the technology and communications industries to discuss the latest developments related to their fields and pursue mega deals. Several prominent companies working in the artificial intelligence (AI) space were headliners this year, but none grabbed more attention than Simon Mays-Smith, a senior executive at Autodesk, an engineering firm, who urged investors to pay closer attention to the unsexy AI stuff that companies were pursuing.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

The remarks made by Mays-Smith echo to a certain extent the comments made by Eric Sheridan, a senior research analyst covering the US Internet sector within the research division of the bank, who said on the sidelines of the event that he believed that AI had the potential to be a significant driver of the financial results of tech companies, even though much more was unknown than known right now about the emerging technology. Sheridan noted that historically, tech product cycles underwent periods of capturing imagination, a build cycle, and disillusionment on the time between the build cycle and applications that have utility.

Sheridan highlighted that if you listened to the companies broadly at the conference, the market was moving deeper into the build cycle, which was putting an upward pressure on capital expenditures. He also underlined that for AI, companies needed a lot of capital, a lot of engineering talent, and a lot of data. These created enormous barriers to entry in the AI space. Thus, per the analyst, even some of the most interesting private companies had found their way to partnerships with some of the incumbents just because of the sheer scale of capital, the sheer need for engineering talent, and then the data required to scale these models.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.

Our Methodology

We selected AI stocks by combing through the proceedings of the latest Communacopia and Technology Conference. We've also added the hedge fund sentiment for these stocks, as of Q2 2024.