We recently compiled a list of 10 AI news and ratings that investors should miss. In this article, we’ll take a look at how CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stands compared to other AI stocks.
Reuters recently reported that the rise of artificial intelligence is reshaping investment strategies, creating massive capital demands that challenge the traditional dynamics of the technology sector. Unlike previous technology booms that focused on software, the current wave of AI is focused on much more capital-intensive hardware. Big tech companies are expected to spend more than $200 billion in capital spending in 2025, nearly double what they spent in 2021, according to the report. These investments primarily target AI infrastructure, from data centers to advanced chips.
Visit Goldman Sachs’ 10 Best AI Data Center Stocks and 10 Hottest AI Stocks to read more about these trends.
The report argues that the shift to hardware-oriented AI development poses long-term financial risks. AI infrastructure projects often have extended timelines before profitability and are susceptible to economic slowdowns, inflation, and geopolitical factors. AI startups also face challenges. Their capital-intensive model relies on large funding rounds, with nearly half of U.S. venture capital being allocated to AI in 2024. However, a weak economy and high capital costs could limit available funding, slow innovation and reduce demand for AI hardware, according to Reuters. Additionally, hardware businesses face cyclical risks such as inventory fluctuations and scalability delays.
To learn more about these developments, visit BlackRock’s 30 Most Important AI Stocks and Beyond the Tech Giants: 35 Non-Technology AI Opportunities.
In this article, we selected AI stocks by examining news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Security professionals monitor the global network of threats in real time from the console.
Number of hedge fund holders: 74 people
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud protection across endpoint and cloud workloads, identities and data. The company leverages artificial intelligence to streamline and enhance cyber protection. On November 22nd, Baird raised the company’s price target from $315 to $375 and maintained an Outperform rating on the stock. The recommendation stated that the company faces an improvement in ARR/revenue in the second half of the year. It added that despite the impact and short-term headwinds from the July incident, the channel’s feedback is increasing regarding the success of key strategic initiatives in minimizing total churn and early renewals.
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