Semiconductor company Nvidia (NASDAQ: NVDA) sits at the heart of the artificial intelligence (AI) revolution. Analysts estimate its market share in machine learning processors to be between 80% and 95%, and the chipmaker reinforced its authority by branching into AI software and cloud services. Investors have recognized Nvidia's success and pushed its stock price up 250% in the last year. The company is now worth north of $1 trillion.

When you factor in the law of large numbers, it suggests that other, smaller stocks offer more upside potential at this point than Nvidia. That's just one of the reasons investors should consider (NASDAQ: DDOG) instead.

Morgan Stanley analyst Sanjit Singh sees Datadog as one of the software companies best positioned to benefit from generative AI, and Wolfe Research analyst Alex Zukin believes Datadog could become the "fastest-growing software company" amid the AI boom.

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Source Fool.com