10 AI Stocks Investors Are Watching Closely Right Now

7. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 77

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection. On March 6, UBS lowered the firm’s price target on the stock to $425 from $450 and kept a “Buy” rating on the shares. UBS analyst Fatima Boolani told investors in a research note that CrowdStrike had a “good enough” but limited reacceleration commentary and margins see a quick reset. The price target revision follows CrowdStrike’s fourth-quarter results, showcasing a net new annual recurring revenue (ARR) of $224 million which surpassed expectations.

However, Boolani noted a lack of clarity on the timing and extent of a second-half net new ARR reacceleration. The firm’s analysis also points to an anticipated two-point compression in operating margin by fiscal year 2026. By this time, forecasted free cash flow (FCF) margin is expected to return to approximately 27%. The analyst has also highlighted strong adoption metrics of CrowdStrike’s AI-powered platform, including $900 million in Cloud and SIEM ARR growing 60% year-over-year.