Is MongoDB Rapidly Becoming the Go-To Database for AI Workloads?

MongoDB MDB has been steadily benefiting from the rising demand for AI-powered applications. In the first quarter of fiscal 2026, MongoDB reported revenues of $549 million, marking a 22% year-over-year increase. Atlas, its cloud platform, accounted for 72% of the total revenues, up 26% year over year. While enterprise adoption of AI is still in its early stages, MongoDB believes its integrated architecture will position it to capture long-term revenue growth as more developers build custom, high-value AI applications on its platform.The company’s document model is well-suited for handling fast-changing, unstructured data required by real-world AI. The acquisition of Voyage AI strengthened this capability further, with Voyage 3.5 improving embedding accuracy and cutting storage costs significantly. Companies like LG Uplus are using their AI tools to support thousands of agents with faster, more accurate responses, reinforcing MongoDB’s position in the AI space.MongoDB has added Anthropic’s Model Context Protocol (MCP) across all its databases, including Atlas, to simplify development and database tasks using AI. MCP lets AI agents like Claude, Cursor and GitHub Copilot access tools and data through a client-server model. With the MongoDB MCP Server now in public preview, developers can use natural language to query or explore data, streamlining workflows and boosting productivity.MongoDB also aims to reduce AI hallucinations and increase accuracy through its advanced rerankers and domain-optimized embedding models. These tools rank LLM outputs based on contextual relevance, significantly improving reliability.MDB’s Stiff Competition in the AI-Driven Database MarketMongoDB is seeing rising competition from Snowflake SNOW and Elastic ESTC, both of which are expanding their AI capabilities in the cloud database space.Snowflake introduced native support for vector search and retrieval-augmented generation (RAG) workloads, and even after being acquired by MongoDB, Voyage AI’s models will still be available to Snowflake and to Voyage AI’s other users.Elastic has expanded its AI capabilities with the Elasticsearch Relevance Engine, enabling native vector search, hybrid search and seamless integration with LLMs. With tools for contextual grounding and RAG workflows, Elastic helps developers build secure, production-ready AI applications using its data.MDB’s Share Price Performance, Valuation and EstimatesMDB shares have lost 11.8% in the year-to-date (YTD) period, underperforming the Zacks Internet – Software industry’s growth of 15.8% and the Zacks Computer and Technology sector’s return of 7.7%.MDB’s YTD Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, MongoDB stock is currently trading at a forward 12-month Price/Sales ratio of 7.03X compared with the industry’s 5.79X. MDB has a Value Score of F.MDB ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at 64 cents per share, which has remained unchanged over the past 30 days, indicating an 8.57% year-over-year decline.MongoDB, Inc. Price and Consensus MongoDB, Inc. price-consensus-chart | MongoDB, Inc. QuoteMongoDB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW): Free Stock Analysis Report MongoDB, Inc. (MDB): Free Stock Analysis Report Elastic N.V. (ESTC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks