1. CrowdStrike: AI-powered cybersecurity Leading cybersecurity software provider CrowdStrike. The company uses artificial intelligence (AI) to discover, prevent, and remediate security issues because modern attackers are more sophisticated.
CrowdStrike believes 90% of successful cyberattacks originate at the endpoint (computers and devices) because employees are the most exposed because they regularly communicate via emails, phone calls, and messaging platforms. Not every employee is a cybersecurity expert, so they can't recognize dangers or fix incidents. Thus, AI is crucial to background automation.
CrowdStrike's Falcon platform provides industry-leading endpoint security, cloud security, identity protection, and exposure management. Last year, the company launched Charlotte AI, a generative AI chatbot that speeds up cybersecurity managers' tasks and saves two hours each day. It can assess an organization's security and quickly summarize events, saving hours of manual investigation.
CrowdStrike's AI models are among the most advanced, training on over 2 trillion security events daily. CrowdStrike earned $3.06 billion in fiscal 2024 (ending Jan. 31), up 36% from the year before. The corporation expects fiscal 2025 revenue of $3.99 billion, indicating growth above 30% for another year. Palo Alto Networks, CrowdStrike's primary competitor, is expected to boost its yearly revenue by 16% (though it's considerably larger at $8 billion).
CrowdStrike hopes to increase its yearly recurring revenue to $10 billion in seven years by extending its product line and locations. Still, the company will have barely scraped the surface of its $225 billion potential market by 2028. In fiscal 2025, CrowdStrike will disclose its first-quarter results on June 4, and if the firm meets its short- and long-term forecasts, investors might consider buying the stock.
2. Broadcom: A complex AI play Broadcom is one of the most diverse AI businesses. It was a semiconductor and electronics business that invented the optical mouse sensor in the 1990s, eliminating mouse pads. Since merging with Avago Technologies in 2016, Broadcom has been on an acquisition frenzy.
Broadcom acquired semiconductor device supplier CA Technologies in 2018 and Symantec in 2019. and VMware in 2023. Broadcom spent over $100 billion on the three transactions, creating a multidimensional AI powerhouse.
Broadcom develops semiconductors including data center switches that manage data transfer speed. One of the fastest switches in the business, its Tomahawk 5, is crucial for developers training AI models with thousands of GPUs. Symantec, like many cybersecurity organizations, uses AI to improve results. A chatbot dubbed SymantecAI is accessible to clients after it teamed with Alphabet's (Google) VertexAI to hasten development.
Finally, VMware lets enterprises create virtual machines, allowing AI developers to optimize data center infrastructure across diverse workloads. VMware lets several users plug into a server to use 100% of its capacity, even if one user only needs 10%. Given the shortage of semiconductor industry leaders like Nvidia's GPUs, efficiency is crucial.