We recently published a list of Top 10 Stocks Analysts are Watching as AI Selloff Deepens. In this article, we are going to take a look at where Crowdstrike Holdings Inc (NASDAQ:CRWD) stands against other top stocks analysts are watching as AI selloff deepens.

Major AI stocks are struggling to gain traction as investors rethink their strategies amid concerns of a slowdown in spending. Even top tech bulls are starting to use the word “bubble” for the AI trade. Gene Munster, Deepwater Asset Management managing partner, said in a latest program on CNBC that he believes we still have two years of the AI bull run before the bubble bursts.

“From a high-level perspective, I always return to the fundamentals as a tech investor. The fundamentals of these companies remain strong. I predict we have two good bullish years ahead before a spectacular bubble burst. When I see this, it shakes my confidence, but if I stay focused on the fundamentals, I still believe this trade will play out.”

READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In

For this article, we picked 10 stocks analysts are currently talking about. With each company we have mentioned the number of hedge fund investors. 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 Funds Investors: 74

Jamie Meyers, Senior Securities Analyst at Laffer Tengler, said in a latest program on Schwab Network that Crowdstrike Holdings Inc (NASDAQ:CRWD) could face volatility in the near term but he’s bullish on the stock in the long term:

“Visibility is rather limited right now—that incident was all over the news. It delayed their outbound sales activities, extended sales cycles, and the company is having to offer customer commitment packages—which is essentially a discount or forgoing upfront payment from their customers. But we remain positive on the stock—we think that new ARR is going to be in focus this quarter. We think there’s still a path to 10 billion in ARR (Annual Recurring Revenue) by 2031—and we believe that the company will continue putting up free cash flow margins to 30% plus. But it’s going to be a little rocky in the near term.”

Aristotle Atlantic Core Equity Strategy stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2024 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 6th on our list of top stocks analysts are watching as AI selloff deepens. While we acknowledge the potential of CRWD as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.

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.