Top 9 AI News Updates Investors Probably Missed

2. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 55

Cloudflare, Inc. (NYSE:NET) is a software infrastructure company that provides an integrated cloud-based security solution to secure public cloud, private cloud, on-premises and software-as-a-service applications. Analysts at Bank of America believe the company is well-positioned to benefit from artificial intelligence and network security growth potential.

Consequently, they double-upgraded the stock to a buy from underperform on March 25 and hiked the price target to $160 from $60. The upgrade comes on the heels of analysts touting Cloudflare, Inc.’s (NYSE:NET) differentiated approach to AI and its momentum on network security, especially Secure Access Service Edge. Its AI as a service offering is expected to elicit strong demand from enterprises, consequently positioning the company as a market leader in the segment.

“AIaaS is already resonating with customers; our surveys show AI is the leading product Cloudflare customers are looking to adopt in the next twelve months (NTM), with average AI spending forecast to increase +8% to $100k per customer, or 15% of total customer spending,” BofA analysts led by Madeline Brooks said in a note.