We recently compiled a list of the 10 AI Stocks That Wall Street Is Betting On. In this article, we are going to take a look at where CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stands against the other AI stocks.
Elon Musk has been pressing hard to halt OpenAI’s transition into a for-profit entity. But the high-stakes legal battle isn’t seemingly working out in his favor. In the latest news, a U.S. judge has denied the billionaire’s request for a preliminary injunction to pause OpenAI’s transition to a for-profit model. However, she did agree to a fast-track trial in the fall of this year to address his claims against OpenAI and its CEO, Sam Altman.
According to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, Musk doesn’t have “the high burden required for a preliminary injunction” to block the conversion of OpenAI. However, Rogers wrote in the order that she wanted to resolve the lawsuit quickly given “the public interest at stake and potential for harm if a conversion contrary to law occurred.”
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The filing noted that even though the plaintiffs “failed to meet their burden of proof for the extraordinary relief requested,” other aspects of Musk’s lawsuit against OpenAI can proceed. Currently, OpenAI is overseen by a non-profit parent that Elon Musk recently offered to buy. However, the company’s board unanimously rejected the $97.4 billion offer to buy OpenAI.
Since Musk has become Altman’s chief adversary, he has been putting obstacles in OpenAI’s path to becoming a for-profit entity, claiming that the AI startup will deviate from its original mission of developing artificial intelligence for the benefit of humanity. OpenAI and Altman have denied these accusations, stating that the shift is essential to raise capital and effectively compete in the rapidly evolving AI industry.
OpenAI has welcomed the judge’s recent decision, stating that the lawsuit by Musk, who launched rival startup xAI in 2023, has “always been about competition”. Meanwhile, Marc Toberoff, a lawyer for Musk, said they were pleased the judge “offered an expedited trial on the core claims driving this case”.
“We look forward to a jury confirming that Altman accepted Musk’s charitable contributions knowing full well they had to be used for the public’s benefit rather than his own enrichment.”
-Marc Toberoff.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Security personnel at their consoles, monitoring a global network of threats in real-time.
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 5, Citizens JMP analyst Trevor Walsh reiterated a “Market Outperform” rating and $400.00 price target on the stock. According to Walsh, Crowdstrike has recovered from the headwinds of the July 2024 outage and is well on track toward product renewals in FY26. Lauding the management on how it handled the situation, Walsh also pointed out to continued growth in key product areas, such as Falcon Cloud Security, Falcon Identity Protection, and LogScaleNext-Gen SIEM.
All three of these products are part of CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s AI-powered Falcon platform that provides comprehensive cybersecurity solutions. He further noted how current macroeconomic uncertainty is pushing discussions around platform consolidation, which may prove fruitful for Crowdstrike. In addition, the analyst also highlighted the company’s AI innovations, particularly Charlotte AI. Charlotte AI, the digital security analyst, along with the company’s efforts to secure AI workloads, demonstrates its rapid growth and monetization in AI.
Overall CRWD ranks 9th on our list of the AI stocks Wall Street is betting on. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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