In a world continually reshaped by technology, cloud computing stands as a pivotal force driving transformation. With its rapid ascent, early investors in cloud computing stocks have seen their investments significantly outperform the S&P 500. This serves as a highlight to the sectors explosive growth and its vital impact on business and consumer landscapes.

2024 shouldnt be any different, which is why, in seizing this momentum, I turned to ChatGPT, initiating my research on the top cloud computing picks with a precise ask.

Kindly conduct an in-depth exploration of the current dynamics and trends characterizing the United States stock market as of February 2024.

I proceeded with a targeted request to unearth gems within the cloud computing arena.

Based on this, suggest three cloud computing stocks that have 10 times potential.

The crucial insights provided by ChatGPT lay the foundation for our piece covering the three cloud computing stocks pinpointed by AI as top contenders poised to deliver stellar returns.

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Datadog Inc. (NASDAQ:DDOG) has emerged as a stalwart in the observability and security platform sector for cloud applications. It witnessed an impressive 61.76% stock surge in the past year and currently trades at $134.91.

Further, the companys third quarter 2023 financial report underscores its robust performance. It showed a 25% year-over-year (YOY) revenue growth, reaching $547.5 million. Additionally compelling is the significant uptick in customers from 22,200 to 26,800. This signals the firms efficiency in expanding its client base and driving revenue.

Simultaneously, Datadog generative artificial intelligence (AI) and large language models (LLMs) foresee potential growth in cloud workloads. AI-related usage comprised 2.5% of third-quarter annual recurring revenue. This resonates notably with next-gen AI-native customers and positions the company for sustained growth in this dynamic landscape.

The projected $568 million revenue for the fourth quarter of 2024 reflects a commitment to sustained expansion. Also, it underlines the companys ability to adapt to market dynamics and capitalize on emerging opportunities.

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Zscaler, Inc. (NASDAQ:ZS) is a pioneer in providing cloud-based information security solutions.

The company made a noteworthy shift to 100% renewable energy for its offices and data centers in November 2021. This solidifies its standing as an environmental steward and leader in the market. Also, CEO Jay Chaudhry emphasizes that beyond providing top-notch cybersecurity, Zscalers cloud services contribute to environmental conservation by eliminating the need for on-premises hardware.

Beyond sustainability, Zscaler thrives financially, boasting 7,700 customers, including 468, contributing over $1 million in annual recurring revenue (ARR). In the first quarter, non-GAAP earnings per share exceeded expectations at 67 cents, beating estimates by 18 cents. And, revenue soared to $496.7 million, a remarkable 39.7% YOY bump.

Looking forward, second-quarter guidance forecasts revenue between $505 million and $507 million, indicating a robust 30.5% YOY growth. Also, it has an ambitious target of $2.09 billion to $2.10 billion for the entire fiscal year. Thus, Zscaler attributes its success to a potent combination of technology and financial acumen.

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Snowflake (NASDAQ:SNOW) stands resilient amid market fluctuations, emerging as a top performer in the cloud stock landscape over the past year.

Moreover, while yet to reach previous all-time highs, its strategic focus on AI integrations has propelled its recent success. Positioned at the intersection of the enduring narrative around AI and the high-interest cloud computing sector, Snowflake captures attention with its forward-looking approach.

Financially, Snowflake demonstrates robust figures with a gross profit margin of 67.09%, signaling financial strength. Additionally, the impressive 40.87% revenue growth significantly outpaces the sector median by 773.93%. This attests to the companys agility in navigating market dynamics.

Peering into the future, Snowflakes fourth-quarter guidance paints a promising picture, with an anticipated product revenue falling between $716 million and $721 million. Elevating the outlook, the fiscal year 2024 projection boldly sets a target of $2.65 billion in product revenue. Therefore, this ambitious trajectory demonstrates Snowflakes adept market navigation, savvy AI integration, and steadfast commitment to robust financial performance.

On the publication date, Muslim Farooque did not have (directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelors of science degree in applied accounting from Oxford Brookes University.

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ChatGPT Stock Predictions: 3 Cloud Computing Companies the AI Bot Thinks Have 10X Potential - InvestorPlace