CyberArk Software Ltd. (CYBR): Enhancing Cybersecurity with AI-Driven Identity Security

We recently published a list of Top 10 AI Stocks That Are Being Monitored By Wall Street. In this article, we are going to take a look at where CyberArk Software Ltd. (NASDAQ:CYBR) stands against other top AI stocks that are being monitored by Wall Street.

As the global tech sector was catching up to the disruption caused by DeepSeek’s r1 AI model, Chinese e-commerce giant Alibaba announced its brand new Qwen 2.5 AI model on the first day of the Lunar New Year. The Qwen 2.5 is pre-trained on large-scale multilingual and multimodal data and rivals DeepSeek’s AI model.

“Qwen 2.5-Max outperforms … almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B,” the group’s cloud unit on its official WeChat account.

The latest Chinese AI model release also sent US firms scrambling to innovate and stay ahead of the competition. OpenAI CEO Sam Altman recently teased several “exciting new features” coming to ChatGPT and a new ChatGPT Gov tool to bolster ties with the US government.

The rise of advanced, cost-effective Chinese AI models has introduced volatility in US stocks as analysts rampantly rerate companies and shift outlooks based on the rapidly evolving tech landscape.

We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

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).

CyberArk Software Ltd. (CYBR): Enhancing Cybersecurity with AI-Driven Identity Security

A data center with a repetetive design of computer servers, showing the companies’ efficient and secure IT infrastructure.

CyberArk Software Ltd. (NASDAQ:CYBR

Number of Hedge Fund Holders: 51

CyberArk Software Ltd. (NASDAQ:CYBR) is a cybersecurity firm that offers AI-powered identity security solutions, enhancing privileged access management, endpoint protection, and multi-factor authentication across dynamic environments with real-time threat response and insights on the CORA AI platform. The AI tool ensures round-the-clock monitoring of potential enterprise risks to provide threat-response recommendations and even implement automated actions as required. CyberArk Software Ltd.’s (NASDAQ:CYBR) acquisition of Venafi also proved helpful in developing end-to-end identity security products for enhanced protection.

On January 28th, Truist hiked the company’s stock price target to $385 from $350 and maintained a “Buy” rating as part of a broader research note previewing Q4 earnings in the Infrastructure & Security Software segment. Analysts expect firms under coverage to report robust Q4 earnings and adopt a conservative stance for guidance, which could fuel a continued beat-and-raise cadence for 2025. The brokerage added that its conversations with clients and partners signal demand and minimal changes in the macro environment.

Overall, CYBR ranks 8th on our list of top AI stocks that are being monitored by Wall Street. While we acknowledge the potential of CYBR as an investment, our conviction lies in the belief that 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 CYBR 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.