We recently published a list of 10 Latest AI News You Shouldn’t Miss. In this article, we are going to take a look at where Crowdstrike Holdings, Inc. (NASDAQ:CRWD) stands against other latest AI news you shouldn’t miss.
Anastasia Amoroso, iCapital chief investment officer, said in a latest program on CNBC that 2025 will be the year of AI software, data centers and power. She believes the AI rally is broadening out.
“Artificial intelligence, as I mentioned, is carrying itself over into 2025, and I think it’s broadening. Last year, last two years, have been about semiconductors. I think this year has to be about AI software; it has to be about AI monetization, but it also has to be about AI power. And it’s not just, you know, a number of headlines talking about data centers and how much they consume, and the fact that I think you need eight times the electricity to run an AI data center. It’s an actual real trend, which I also think the Trump Administration is going to support as well.”
The analyst also said investors should consider alternative investments or private markets as she believes private equity valuations are below the levels seen in public markets.
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For this article we picked 10 AI stocks trending on latest news. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Crowdstrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Investors: 74
Adam Coons from Winthrop Capital recently said while talking to Schwab Network that he’s bullish on Crowdstrike Holdings, Inc. (NASDAQ:CRWD) because of AI.
“We looked at cybersecurity as a way to play the growth in AI but with a more measurable approach. When you consider something like Crowdstrike Holdings, Inc. (NASDAQ:CRWD), sure, valuations might be a bit hard to stomach. However, the growth potential and the clear necessity for a new generation of cybersecurity make Crowdstrike Holdings, Inc. (NASDAQ:CRWD) a leader in the space.
When you look at the adoption of Falcon, for example, within their product pipeline, it underscores that this is a market — and I know this is probably an overused phrase — but it’s definitely a pie that’s growing. It’s clear it will continue to grow because AI is only going to make cybersecurity more complex. From a business standpoint, that complexity increases billable opportunities at higher rates, which is why we like the space, particularly Crowdstrike Holdings, Inc. (NASDAQ:CRWD).”
Despite the tech outage incident, the fundamental story of Crowdstrike Holdings, Inc. (NASDAQ:CRWD) remains unchanged. Wedbush Securities last year estimated that less than 5% of CrowdStrike’s customers might switch providers, potentially impacting revenue by $150 million out of the projected $3 billion in sales for fiscal year 2024.
Fidelity Growth Strategies Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q3 2024 investor letter:
“A non-benchmark stake in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) (-40%) was the biggest detractor among individual stocks. The shares of this cybersecurity platform provider fell precipitously in July, after a glitch in a CrowdStrike software update led to a global outage for many of its customers that, among other impacts, caused the mass cancellation of flights around the world. After bottoming out in early August, the stock made a partial rebound by quarter end, but we exited the fund’s holding during the summer.”
Overall, CRWD ranks 8th on our list of the latest AI news you shouldn’t miss. While we acknowledge the potential of CRWD, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
