Cloudflare stock has rebounded after experiencing a late-April sell-off when the company announced its Q1 2023 results. Despite tepid guidance and a reduced full-year forecast at the time, the internet infrastructure services provider has surged 54% since May. Cloudflare’s critical role in the AI sector is highlighted by the fact that generative AI applications, such as OpenAI’s ChatGPT, require a fast and reliable internet connection. Cloudflare’s vast network of servers helps improve performance, reliability, and security, with a solid position to tap the growing adoption of generative AI. The company’s addressable market is expected to reach $146bn in 2023, while it expects to deliver revenue of $5bn by 2027. If Cloudflare were to reach this target and trades at a 15 times sales multiple, its market cap could triple from today. The article argues that investors seeking an AI stock that is cheaper than Nvidia, which sports a sales multiple of 39, and which could take advantage of AI should consider buying Cloudflare.
Hot AI Stock with Triple Growth Potential Cheaper than Nvidia
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