10 AI Stocks on Market Radar

3. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 63

Cloudflare, Inc. (NYSE:NET) is one of the 10 AI Stocks on Market Radar. On December 17, Stifel reiterated its Buy rating on the stock, with analysts viewing Cloudflare as a key beneficiary of rising AI-first security demand amid growing risks.

The firm highlighted how it is becoming increasingly important for cyber teams to secure the use of artificial intelligence within organizations to protect against unauthorized use, data loss, and AI output risks such as hallucinations.

Looking at the year ahead, the firm anticipates AI security to play an increasingly important role as GenAI and Agentic AI production deployment adoption accelerates.

“In 2026, we expect AI security such as AI visibility/monitoring, data security, model security, and overall AI/model governance to play an increasingly important role as GenAI and Agentic AI production deployment adoption accelerates.”

With organizations adopting AI-first offerings to counter threat actors, robust Identity, Data, Cloud, and Zero Trust Security are crucial; the firm noted.

While essentially all private and public cyber vendors are offering AI-based solutions for security, threat actors are operating with immense speed which is why organizations must adopt “AI-first offerings in-kind.”

“AI for Security: Essentially all public and private cyber vendors are offering AI-based security solutions to better automate prevention, detection, and response. Given the speed at which threat actors are utilizing AI to accelerate and automate the attack chain (to identify targets, determine next steps, lock-up/exfiltrate data, etc.), organizations must adopt AI-first offerings in-kind (to power real-time threat intelligence, anomaly detection, and incident response, etc.), as humans-in-the-loop are simply too slow to prevent and/or respond to attacks.

Stifel identified the following names benefiting from this trend:

“Beneficiaries under coverage: CHKP, CRWD, CYBR, NET, OKTA, PANW, ZS.”

Cloudflare, Inc. (NYSE:NET) is a cloud services provider that powers AI workloads through its Workers AI platform.