Microsoft and CrowdStrike: AI Stocks to Watch for Explosive Growth
The year 2023 is shaping up to be a remarkable period in the advancement of artificial intelligence (AI). As we approach the end of the year, it is becoming increasingly evident that the AI revolution is just getting started, presenting investors with exciting opportunities. In this article, we highlight two AI stocks that are poised for explosive growth in the coming years: Microsoft and CrowdStrike.
Microsoft, with its dominant position in the AI space, stands out as a top player. The company’s Azure cloud infrastructure service has emerged as a leading platform for building and scaling AI applications. In the first quarter of its 2024 fiscal year, revenue for Azure and other cloud services increased by 29% compared to the previous year. This growth was primarily driven by the high demand for AI-related projects.
Furthermore, Microsoft’s leadership in enterprise productivity software has allowed it to make significant strides in the AI-powered personal assistant market. The company’s Copilot personal assistant has already gained traction, with over 37,000 organizations signing up for the early access version. Additionally, 40% of Fortune 100 companies have already embraced this innovative service.
But Microsoft’s AI influence extends far beyond cloud infrastructure and personal assistants. With its wide range of offerings, including operating system software and video games, the company is well-positioned to integrate AI into multiple facets of its business. This comprehensive approach ensures that nearly every aspect of Microsoft’s operations will benefit from AI integration, cementing its early lead in the AI race.
On the cybersecurity front, CrowdStrike is a standout player utilizing AI to fend off threats. As the leading provider of cloud-based protection software, CrowdStrike possesses a significant advantage in gathering and analyzing threat data. This advantage will only grow in importance as cybercriminals increasingly employ generative AI and other advanced technologies in their attacks.
The financial performance of CrowdStrike reflects its strong position in the cybersecurity market. Sales in the second quarter of its 2024 fiscal year increased by 37% year over year, reaching $731.6 million. The company’s profitability has also surged, with non-GAAP earnings per share jumping roughly 106% compared to the previous year.
Looking ahead, CrowdStrike estimates that the total addressable market for its cybersecurity services will reach $97.8 billion by 2025, growing at a compound annual rate of 13%. However, the company expects its TAM to skyrocket to $158 billion in 2026 as it expands into new service offerings and capitalizes on cloud security opportunities. With its strengths in adaptive AI technologies, CrowdStrike is well-positioned to continue gaining market share and excelling in new market segments.
In conclusion, Microsoft and CrowdStrike are two AI stocks that investors should closely watch for explosive growth in 2023 and beyond. Microsoft’s strong presence in cloud infrastructure and enterprise software, combined with its broad range of offerings, positions it as a leader in the AI space. On the other hand, CrowdStrike’s expertise in cybersecurity and adaptive AI technologies places it at the forefront of protecting against evolving threats. As the AI revolution continues to unfold, these two companies are well-positioned to capitalize on its immense potential.
