We recently published a list of the 13 Best Technology Stocks to Buy for Long-Term Investment. In this article, we are going to take a look at where Crowdstrike Holdings, Inc. (NASDAQ:CRWD) stands against other tech stocks to buy for long-term investment.
On May 12, Jeff Kilburg of KKM Financial and Dan Ives of Wedbush Securities appeared together on CNBC to discuss AI, cybersecurity, and mega-cap tech, especially as tech stocks soar as the US-China tariff deal boosts market confidence. Jeff Kilburg first identified the tech software sector as the primary beneficiary of the recent market pause amid optimism and gains, and highlighted that markets are broadly positive. He noted that many investors underestimated how quickly a China trade deal would materialize and contrasted it with the UK deal, which was expected to be a slower, tentative template. Kilburg suggests that faster deal-making could continue and benefit several software companies, which have been overlooked due to the focus on the MAG7. Dan Ives concurred with Kilburg’s view but singled out NVIDIA as the biggest near-to-medium-term beneficiary of the pause, especially given its prior exposure to China tariffs. He referenced the ongoing AI revolution and the surge in AI-related stocks and described the current environment as a dream scenario for tech investors. Ives anticipates new highs for tech and the broader market. He also described a ‘golden age’ for cybersecurity stocks, which are acting as secondary beneficiaries of AI growth.
On a question about the impact of the admin’s focus on reducing federal spending and debt, particularly on companies that derive substantial revenue from government contracts, Kilburg responded that this fiscal discipline is actually positive for software companies as it may drive more spending toward efficient software solutions. Kilburg also addressed the sectors to avoid or be cautious about amid the current market environment. He suggests trimming utilities, which have been a safe haven but may now be less attractive. He points out that the VIX volatility index dropping below 20, which is a big change from over 60 in April, indicates reduced market fear and increased investor confidence. This suggests a market environment favoring higher-beta and growth-oriented investments rather than defensive plays.
Our Methodology
We first sifted through stock screeners, ETFs, and financial media reports to compile a list of the top tech stocks that have grown over 15% in the past 3 years. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, 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)
3-Year Revenue CAGR: 39.65%
Number of Hedge Fund Holders: 77
Crowdstrike Holdings, Inc. (NASDAQ:CRWD) offers cybersecurity solutions through its unified platform that provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model. It primarily sells subscriptions to its Falcon platform and cloud modules.
The company’s Next-Gen SIEM (Security Information and Event Management) segment grew by 115% year-over-year and reached more than $330 million in ending ARR in FY2025. The Next-Gen SIEM is a component of the integrated Falcon platform and offers superior speed, scalability, and cost efficiency as compared to traditional SIEM solutions. CrowdStrike believes that the combination of its Next-Gen SIEM with its native first-party data and the AI-powered capabilities of its GenAI security analyst, called Charlotte AI, provides an advantage in leading the AI security revolution.
A notable 7-figure win in this segment during FQ4 2025 was a major US airline that chose CrowdStrike’s Next-Gen SIEM to replace its legacy QRadar SIEM. The price target on CrowdStrike was raised to $500 from $400 with an Outperform rating by Citizens JMP analyst Trevor Walsh on May 5. Walsh believes that Crowdstrike Holdings, Inc. (NASDAQ:CRWD) is continuing its momentum in core and new markets.
Aristotle Atlantic Large Cap Growth Strategy is positive on the company and stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2025 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cybersecurity products and services that offer endpoint protection and threat intelligence solutions, enabling customers to prevent damage from targeted attacks, detect advanced malware and search all endpoints. The company’s open cloud architecture enables it and third-party partners to rapidly innovate, build and deploy new cloud modules that can provide customers with enhanced functionality across a myriad of use cases.
We see the cloud cybersecurity market as positioned to experience strong growth over the next few years, driven by continued migration from on-premises to cloud-based architecture. We believe CrowdStrike can benefit from this trend due to its early-mover advantage, multiple product offerings and native integrations with leading cloud platforms. The increasing threats from state-sanctioned cybercriminals using high-performance computing and AI necessitate higher spending on advanced cybersecurity products. The total addressable market (TAM) is projected to grow significantly over the next four calendar years. Additionally, CrowdStrike’s cloud-native architecture and unified platform approach provide competitive advantages, resulting in high customer retention and widespread adoption of multiple modules.”
Overall, CRWD ranks 8th on our list of the best technology stocks to buy for long-term investment. While we acknowledge the growth potential of CRWD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
