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Analysts Applaud CrowdStrike Holdings’ (CRWD) SGNL Deal, Reiterate Buy Ratings

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is among the best software infrastructure stocks to buy according to hedge funds. On Thursday, January 8, the company announced an agreement to acquire SGNL, an identity management startup, for $740 million, according to CNBC. The company believes the acquisition will bolster its position in the Next-Gen Identity Security space, complementing its Falcon platform intelligence.

The deal is expected to be closed in the first quarter of FY 2027, and the purchase price is expected to be paid predominantly in cash, with a portion in stock.

The CNBC report notes that CrowdStrike’s CEO and founder, George Kurtz, sees this as an opportunity to further penetrate the identity security market, which IDC expects to grow from approximately $29 billion in 2025 to $56 billion by 2029. The CEO further said,

AI agents operate with superhuman speed and access, making every agent a privileged identity that must be protected. With SGNL, CrowdStrike will deliver continuous, real-time access control that eliminates the known and unknown gaps from legacy standing privileges. We’re disrupting the premise of modern privilege and access – for every identity, human or machine. This is identity security built for the AI era.

The deal was well received by analysts, with many, including those at Jefferies and Barclays, reiterating their Buy ratings after the news. In fact, Berenberg Bank upgraded CrowdStrike Holdings Inc. (NASDAQ:CRWD) to Buy, citing the stock’s reasonable valuation following the recent pullback and the long-term benefits of the SGNL deal.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is an American cybersecurity technology company. Based in Austin, Texas, the company provides endpoint security, threat intelligence, and cyberattack response services.

While we acknowledge the risk and potential of CRWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 7 Spin-Off Companies in 2025 and 11 Best Stocks You’ll Wish You Bought Sooner.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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