AI accelerates the need for data streaming, because chatbots and virtual assistants are constantly pulling data from different sources to generate responses for the end user. Confluent's technology is helping businesses turn generic AI applications into highly personalized assistants.

For example, ChatGPT can probably tell you how much it costs to bring a surfboard onto a plane, because that information is available online. But it can't tell you whether your flight is delayed, nor can it help you move your ticket to a different day. But an airline could install a chatbot on its website and use Confluent to build data pipelines that access its internal systems. This would create a highly intelligent virtual assistant that is capable of helping customers with their highly specific inquiries, saving the airline tons of money on customer service costs.

Confluent serves over 6,140 business customers already, and that number is consistently growing. According to management's guidance, the company is on track to generate a record $1.1 billion in revenue during 2025, which would be the first time it crosses the billion-dollar milestone.

Any significant increase in software demand will likely benefit Confluent, because real-time experiences are no longer a feature but a necessity. So, if Ark is right, Confluent's stock could soar in the coming years. It's trading at a price-to-sales (P/S) ratio of 7.7 as of this writing, which is cheap relative to its three-year average of 10.7. Therefore, now could be a great time for long-term investors to take a position .

2. Datadog: A portfolio of critical tools for AI developers

Datadog developed a cloud observability platform that businesses can use to monitor their digital infrastructure around the clock. It can alert them to website glitches or software system outages the moment they arise, so managers can fix them before they compromise the customer experience.

Datadog had around 30,500 business customers at the end of the first quarter of 2025 (ended March 31). They come from a variety of industries including retail, entertainment, manufacturing, and even financial services. The company is now expanding its product portfolio to serve the growing number of those businesses adopting AI.

Last year, Datadog launched an observability platform specifically for large language models (LLMs), which helps developers track costs, troubleshoot bugs, and measure the quality of their outputs so they can make changes to better suit their end users. During the first quarter, the number of customers using this product more than doubled compared to just six months earlier, so demand is soaring.

In June, Datadog expanded its LLM observability platform to include a new product called AI Agent Monitoring, which tracks the behavior of AI agents to ensure they are delivering the intended outcomes. This tool will be increasingly important as businesses deploy more AI agents to autonomously handle operational tasks, because unproductive or erroneous agents could significantly impact employees and customers.

Datadog said 4,000 of its customers were using at least one of its AI products at the end of the first quarter, doubling from the year-ago period. Uptake should continue at a rapid pace, because demand is likely to increase in lockstep with AI adoption.

Datadog expects to generate as much as $3.235 billion in total revenue during 2025 -- a forecast it recently increased by $40 million thanks to the strong demand it experienced across the board during the first quarter. Its stock is down 28% from its all-time high, but it's still trading at a P/S ratio of 17.4, making it considerably more expensive than Confluent. However, that is well below its peak of above 60.

Despite its elevated valuation, long-term investors could still earn a significant return from Datadog stock. If a $13 trillion opportunity unfolds in the software space by 2030 as Ark predicts, then Datadog's current stock price will probably look like a bargain when we reflect on this moment five years from now.

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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Walmart. The Motley Fool recommends Confluent. The Motley Fool has a disclosure policy .

Cathie Wood Thinks AI Will Create a $13 Trillion Software Opportunity -- 2 Unstoppable Stocks to Buy if She's Right was originally published by The Motley Fool