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MongoDB Shares Rose to 31% on Demand from Generative AI

Database Management

BusinessHonor: MongoDB Soars 31% on AI Demand

Business Honor
28 August, 2025

MongoDB's Atlas cloud usage grows with AI demand, increasing revenue projections and investor confidence with 31% surge.

The market value of MongoDB rose to nearly $5.2 billion, as the company's Atlas cloud database system saw a 31% increase in share price. The increase is caused by the growing importance of generative AI, which handles massive amounts of unstructured data by depending on strong databases. As more businesses develop AI apps like chatbots, recommendation systems, and search tools, Atlas, MongoDB's cloud-based database service, is growing more and more popular. As these technologies need databases that are fast and flexible, Atlas is a preferable option.

MongoDB raised its financial projections as a result. The company's earlier prediction of $2.25 billion to $2.29 billion in revenue for financial year 2025 has been increased to $2.34 billion to $2.36 billion. In addition, it increased its modified profit expectation from $2.94 to $3.12 per share to between $3.64 and $3.73. Both numbers topped the expectations of Wall Street. Increased demand from startups and large businesses, helped by stronger AI features and a change in marketing focus towards larger clients, supported MongoDB's success, according to Morningstar analyst Luke Yang. According to analysts, the business is gaining marketplace share and growing faster due to this approach.

The company at present has a "Buy" rating and an average target price of $325 after more than 15 analysts increased their price goals. Investor confidence in MongoDB's growth is evident through its ability to trade at 58.6 times forward profits, when compared to 140.91 for Snowflake and 32.85 for Oracle. MongoDB has a major role in the future as artificial intelligence becomes more and more integrated into modern software. Atlas may transform from a supporting database to an important part of the AI infrastructure with the continuing developments.