After weathering a storm of market uncertainties last year, the stock market has emerged with renewed vigor in 2023. A driving force behind this resurgence is the remarkable ascent of artificial intelligence (AI), propelling select players in the AI space to new valuation heights.
Among these are two companies that stand out as prime investment prospects for those seeking to capitalize on AI-driven growth.
CrowdStrike’s Fortified Cybersecurity
The evolution of AI has not only given rise to groundbreaking innovations but also a surge in cyber threats. Recognizing this, CrowdStrike, a cybersecurity stalwart, has been at the forefront of AI integration for over a decade. Leveraging AI and machine learning, the company has equipped itself to tackle the looming wave of AI-propelled cyberattacks.
With the AI-fueled onslaught of threats imminent, CrowdStrike anticipates its current addressable market to expand from $76.1 billion in 2023 to a substantial $97.8 billion by 2025. The company’s strategic product launches, initiatives, and forays into cloud security are set to propel its addressable market even further, with projections of reaching a formidable $158 billion by 2026—more than double the current year’s estimate.
Amid these ambitious forecasts, CrowdStrike projects a robust 34% annual sales growth this year, coupled with a notable 54% uptick in adjusted earnings. Despite a more tempered growth compared to the prior year, the company’s trajectory remains promising. Its market leadership in the cybersecurity domain positions CrowdStrike not only to drive consolidation trends but also to offer an expanding suite of software solutions.
Pinterest’s AI-Enhanced Advertising
AI’s sphere of influence extends beyond security, finding its place in advertising as well. Pinterest, a platform adored for its visual appeal, has embraced AI in the form of recommender systems. These systems have enabled Pinterest to serve users with ads that are more relevant, thus garnering higher attention from marketers and boosting return on investment.
As Pinterest perfects its ad targeting prowess, its revenue has surged from $473 million in 2017 to a substantial $2.8 billion in 2022. This upward trajectory seems poised to continue, fueled by AI’s continued integration. Remarkably, Pinterest’s forward price-to-earnings ratio of approximately 23 suggests an opportune moment for investors to consider the stock, given its potential to thrive during the impending bull market.
Seizing AI-Powered Opportunities
The market’s increasing focus on AI stocks has been undeniable this year, yet the true potential of this technological revolution is still unfolding.
While not pure AI plays, both CrowdStrike and Pinterest are well-positioned to drive the broader tech sector forward. As AI reshapes the landscape, these companies stand to harness the tools that translate into robust business performance and promising stock trajectories.
Embracing the AI Revolution for Future Prosperity
The stock market’s resurgence in 2023 finds its foundation in the ascendancy of AI. Among the AI-driven success stories are two prominent players—CrowdStrike and Pinterest.
CrowdStrike’s AI-fueled cybersecurity innovations and Pinterest’s enhanced advertising strategies underscore their growth potential.
As AI continues to redefine possibilities, these under-appreciated stocks offer investors an opportunity to align themselves with the next wave of innovation and profit.
