Since hitting its low on April 8th, the major stock markets have experienced a significant surge. At present, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have climbed by approximately 26%, 37%, and 18% respectively.
In my opinion, it appears that the growth phase for select AI-focused stocks is far from over. Here are two picks I find promising with significant potential for further gains.
CrowdStrike Holdings
The stocks of CrowdStrike Holdings (CRWD), a leading name in cybersecurity, have been surging for years now. Over the last five years, they’ve climbed approximately 350%, which equates to a remarkable compound annual growth rate (CAGR) of 35%. This is significantly higher than the S&P 500’s average growth rate of 16% during the same timeframe.
Despite experiencing a significant setback last year due to a worldwide computer outage caused by a platform update from the company, resulting in over 4,000 cancelled flights and a 40% drop in stock price, the company has shown remarkable resilience. Not only did it recover all its losses within six months, but it also went on to set new record highs again. Consequently, I believe this robust growth trend will persist.
As a tech-savvy individual, I can’t help but be thrilled about CrowdStrike’s AI-driven cybersecurity platform. In this digital age where cyber threats lurk around every corner, it’s comforting to know that organizations can rely on such robust protection for their valuable networks and data. The fear of being the next big headline in a cybercrime incident is real, but with CrowdStrike, they can rest easy knowing they have one of the best defense systems at their side.
Due to rising security threats, it’s projected that cybersecurity budgets will significantly grow. According to analyst predictions gathered by Yahoo! Finance, this year’s revenue could surge by 21%, totaling approximately $4.8 billion. By the next year, there’s an anticipated increase of another 22%, bringing the total to around $5.8 billion.
The way the company bounced back after last year’s significant shutdown is truly remarkable; it’s clear that there’s an ongoing shift towards stronger cybersecurity; and experts continue to predict a potential increase in revenue by 20% or more over the next two years for this company. It seems that CrowdStrike’s stock is set for a prolonged growth phase.
Nvidia
Currently, Nvidia (NVDA) stands as the biggest global company, boasting a market capitalization exceeding $4.2 trillion. Over the past three years, its stock has skyrocketed by approximately 1,000%, translating to a compound annual growth rate (CAGR) of 121%. Despite this impressive performance, many analysts continue to express optimism towards Nvidia. So, what’s the reason for this bullish outlook?
Essentially, the focus lies on expansion, particularly financial growth. To illustrate this, let’s consider their earnings as an example. In its last financial year (ending January 26, 2025), it recorded $2.99 in earnings per share (EPS). As per data gathered by Yahoo! Finance, analysts predict Nvidia will produce $4.29 of EPS in the next fiscal year 2026 and $5.76 in fiscal year 2027. This indicates an annual growth rate of approximately 43% for 2026 and around 34% for 2027.
Analysts are feeling positive about Nvidia’s projected earnings growth because the artificial intelligence (AI) market is still experiencing a significant boom. Major tech corporations such as Meta Platforms, Alphabet, and Tesla are pouring vast resources into expanding their AI infrastructure. For instance, Meta aims to automate all ads on its platform with this technology. Meanwhile, Alphabet and Tesla are aiming to expand their robotaxi businesses using AI, and both have other ambitious plans that will necessitate a large amount of computational power.
As the foremost designer of AI chips, Nvidia is poised to reap advantages as tech giants significantly increase their investments in the near future. This point is evident for investors: Indeed, Nvidia has experienced a massive growth phase yet it seems this upward trend may persist even more.
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2025-07-24 14:46