Jim Cramer Says AI Is Not “Gobbling” Stocks Like CrowdStrike, Its “Supporting” Them

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was among the stocks Jim Cramer looked at as he discussed the recent bounce in software stocks. Cramer highlighted the impact of AI on the stock, as he said:

Then there are the two stocks of companies that shouldn’t even be grouped with the rest of the software industry at all. What are they doing in the index? The cybersecurity companies, CrowdStrike and Palo Alto Networks. They have nothing to do with traditional software at all, and the businesses are actually turbocharged by AI. That’s right. AI isn’t gobbling them; it’s supporting them, because it creates so many new vulnerabilities that hackers could exploit. That’s why CrowdStrike stock was up 6% today, Palo Alto, plus 4.35%. But they’re well off their highs, nowhere near them.

A stock market graph. Photo by Alesia Kozik on Pexels

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) provides cloud-based cybersecurity solutions. The company offers protection for endpoints, cloud systems, identities, and data. During the April 7 episode, Cramer highlighted the company’s partnership with Anthropic. He commented:

Oh, and for weeks, I’ve been hearing the drumbeat that CrowdStrike would be destroyed by Anthropic. But today, Anthropic announced a partnership with CrowdStrike as well as Palo Alto Networks and some others called Project Glass Wing to protect Anthropic users. Anthropic needs CrowdStrike. It doesn’t seek to wipe it out. Hence why CrowdStrike rallied 24 points, and I think there’s a lot more ahead there, too.

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