As we approach the end of 2023, investors are eyeing potential opportunities in the stock market for 2024. In the world of artificial intelligence (AI), two companies are standing out as promising options: CrowdStrike and UiPath. Both are deeply integrated with AI technologies and are poised for a strong performance in the coming year.
CrowdStrike’s Strong Position in Cybersecurity
One of the top picks for investors is CrowdStrike, a cybersecurity company with a strategic focus on countering the rising tide of cyberattacks. With cyber threats on the rise, CrowdStrike is well-positioned to capitalize on this trend, as evidenced by a 38% increase in cyberattacks in 2022. The company estimates that its total addressable market will grow from $76 billion in 2023 to an impressive $158 billion by 2026.
What sets CrowdStrike apart from its competitors is its advanced AI usage. The company employs AI to analyze network activity, enabling it to swiftly identify and neutralize threats before they can inflict substantial damage. In 2023, despite a slowdown in the software industry, CrowdStrike posted remarkable results, with its annual recurring revenue (ARR) surging by 37% to reach $2.93 billion in the second quarter of fiscal year 2024. Moreover, it achieved positive net income during both fiscal year 2024 quarters. This strong performance has led to a substantial increase in its stock price, and many experts believe that there is still significant growth potential ahead.
UiPath’s Role in Automation and AI Integration
UiPath, another AI-focused company, is gaining attention for its innovative approach to automation. The company specializes in robotic process automation (RPA) software, which streamlines repetitive tasks, making employees more efficient and freeing them to focus on more complex work. UiPath goes a step further by integrating AI into its platform to monitor employee activities and identify areas where automation can enhance productivity.
In 2023, UiPath demonstrated consistent growth, with its annual recurring revenue (ARR) increasing by 25% to reach $1.31 billion. Notably, existing customers increased their spending by $125 for every $100 spent in the previous year. Although UiPath is not yet profitable, it has made significant strides in improving its operating margin, reducing losses from 33% to 21%. Moreover, UiPath’s stock is currently trading at an attractive valuation, making it an appealing investment opportunity.
Promising AI Stocks for 2024
As we approach the end of 2023, the AI sector continues to show promise, and two companies, CrowdStrike and UiPath, are emerging as strong contenders for investment in 2024. With CrowdStrike’s robust cybersecurity solutions powered by AI and UiPath’s innovative RPA software, both companies are well-positioned to thrive in their respective niches.
The impressive financial performances in 2023 and the potential for further growth make these stocks worth watching as we move into the new year. Investors looking to capitalize on the deployment of AI technologies should consider adding CrowdStrike and UiPath to their portfolios.
