This Top AI Stock Is Up Over 81% In 2023 As AI Efforts Take Off

Among top artificial intelligence stocks to watch on the IBD Sector Leaders list, CrowdStrike (CRWD) is potentially actionable as CRWD stock bounces from support at a key level. Friday afternoon this AI stock was on track to close with a gain of more than 8% for the week.

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The Austin, Texas-based cybersecurity firm is focused on detecting and preventing cybersecurity threats for the cloud-computing era. Amid the growing adoption of generative artificial intelligence, CrowdStrike has steadily expanded its threat-detection and protection capabilities.

Founded in 2011, CrowdStrike went public in 2019 at 34. In late 2021, CRWD stock topped out at an all-time high 298.48, before tumbling to a 92.25 low in early 2023. But the stock has made a powerful comeback this year, soaring more than 81% amid a generative AI boom.

The stock is entering November after four straight months of gains.

Near the end of July, CRWD stock broke above a 162.25 buy point from a flat base. Although the breakout initially failed, the stock retook the entry in late August, following a strong earnings report.

Since then, shares have managed to hold support at the 50-day line while bouncing to new highs. This week, shares bounced off support at the 10-week line and remain within 10% of the moving average, offering investors a possible entry.

CRWD Stock Beats Earnings Views

The AI stock has been showing strength since its second-quarter earnings beat, reported near the end of August.

Analysts polled by FactSet were expecting adjusted earnings of 56 cents a share on revenue of $724 million for the period ended July 31. But the company’s results produced an earnings jump of 105% to 74 cents a share. Revenue surged 37% to $731.6 million.

For its fiscal third quarter that just ended in October, analysts expect CrowdStrike to show earnings growth of 85% to 74 cents a share. Further, revenue is seen climbing 34% to $777 million.

For the full year, CRWD stock analysts project earnings will jump 84% to $2.82 a share on an adjusted basis. The AI security software maker plans to report Q3 results on Nov. 28.

At its Fal.Con customer conference in Las Vegas on Sept. 21, CrowdStrike announced its goal of $10 billion in annual recurring revenue in 5 to 7 years. That’s up from the $2.9 billion in annual recurring revenue this year.

The company also unveiled further details on its new generative AI-powered cybersecurity platform, known as Charlotte AI. Charlotte AI will enable natural language querying for security operations tasks like threat hunting, remediation, and threat reports.

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