Sarah Travers
After navigating through a period of market uncertainty in the previous year, the stock market has reemerged with renewed vigor in 2023. One of the driving forces behind this revival is the remarkable advancement of artificial intelligence (AI), propelling select contenders in the AI arena to reach new heights in valuation.
Among these contenders are two companies that stand out as excellent investment opportunities for those looking to capitalize on the growth driven by AI.
Fortified Cybersecurity by CrowdStrike
The evolution of AI has not only ushered in groundbreaking innovations but has also brought about an upsurge in cyber threats. Recognizing this, CrowdStrike, a stalwart in the realm of cybersecurity, has been at the forefront of integrating AI for over a decade. By harnessing the power of AI and machine learning, the company has equipped itself to combat the impending wave of cyberattacks propelled by AI.
With the imminent onslaught of AI-driven threats, CrowdStrike anticipates a substantial expansion in its current addressable market. The market, which stood at $76.1 billion in 2023, is projected to grow to an impressive $97.8 billion by 2025. Through strategic product launches, initiatives, and ventures into cloud security, the company aims to propel its addressable market even further, with projections reaching a formidable $158 billion by 2026—more than double the estimate for the current year.
Amid these ambitious forecasts, CrowdStrike envisions a robust 34% annual growth in sales for this year, accompanied by a significant 54% increase in adjusted earnings. Despite a more tempered growth rate compared to the previous year, the company’s trajectory remains promising. Its dominance in the cybersecurity sector not only positions CrowdStrike to lead consolidation trends but also to offer an expanding array of software solutions.
AI-Enhanced Advertising by Pinterest
The influence of AI extends beyond security, finding a foothold in the advertising landscape as well. Pinterest, known for its visually appealing platform, has embraced AI through recommender systems. These systems have empowered Pinterest to deliver more relevant ads to users, consequently attracting greater attention from marketers and boosting return on investment.
As Pinterest continues to refine its ad targeting capabilities, its revenue has surged from $473 million in 2017 to an impressive $2.8 billion in 2022. This upward trajectory appears poised to persist, fueled by the ongoing integration of AI. 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 bullish market.
Seizing Opportunities Powered by AI
The growing emphasis on AI stocks in the market is undeniable this year, yet the full potential of this technological revolution is still unfolding. Although not exclusively focused on AI, both CrowdStrike and Pinterest are well-positioned to drive advancements in the broader tech sector.
As AI reshapes the business landscape, these companies are poised to harness the tools that translate into strong business performance and promising trajectories for their stocks.
Embracing the AI Revolution for Future Success
The resurgence of the stock market in 2023 finds its roots in the rise of AI. Among the success stories driven by AI are two prominent contenders—CrowdStrike and Pinterest.
CrowdStrike’s AI-powered innovations in cybersecurity and Pinterest’s strategies for enhanced advertising underscore their potential for growth.
As AI continues to redefine what’s possible, these undervalued stocks offer investors an opportunity to align themselves with the next wave of innovation and profitability.
