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CrowdStrike’s (CRWD) Strong Fundamentals Meet a Valuation Firewall

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the 10 best growth stocks to buy according to billionaires. With a YTD share price appreciation of over 40%, CRWD is one of the best-performing stocks in the cybersecurity space. However, the strong rally has raised doubts about the upside potential from current levels.

Recently, Wells Fargo released a mid-year update that expressed a more constructive view on software stocks for the second half of 2025. The firm expects the sector to recover as macro pressures ease and corporate tech budgets begin to stabilize. However, it advises a selective approach over the coming months.

A cybersecurity expert monitoring the security of the company’s assets, emphasizing the importance of data protection.

According to the report, the first half of the year saw increased volatility, with tech stocks fluctuating sharply and investor sentiment dampened by slower-than-expected returns from AI investments. A recent survey by the bank revealed that IT spending increased by just 2% year-over-year in the first half of the year. Still, areas like cloud infrastructure, cybersecurity, and generative AI remain bright spots, showing continued strength despite broader caution in tech spending.

Despite this improving outlook for the sector, CrowdStrike Holdings Inc. (NASDAQ:CRWD) has faced mixed analyst opinions and experienced several downgrades in June.

In the first week of June, Bernstein analyst Peter Weed downgraded CrowdStrike (CRWD) to Market Perform from Outperform, keeping his price target of $371. While the analyst likes the stock fundamentally, he believes the stock is expensively valued at current levels.

In the same week, Bank of America Securities analyst Tal Liani downgraded the stock to Hold from Buy, citing limited upside potential. That said, he raised his price target to $470 from $420 as he now factors in a higher sector multiple.

On the positive side, analysts from RBC Capital, Goldman Sachs, and Piper Sandler, have reiterated their Buy ratings, with price target ranging between $505 and $530.

CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a cybersecurity company specializing in cloud-native endpoint protection, threat intelligence, and incident response services. Its flagship Falcon platform leverages artificial intelligence (AI) and behavioural analytics to detect and prevent cyber threats in real-time.

While we acknowledge the potential of CRWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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