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The AI Investing Pulse

July 17, 2025

In this Week’s Edition:

1. Analysis - AI Cybersecurity $252B opportunity: 3 stocks to watch

2. Stock Ideas - 2 AI stocks for the $13T software opportunity

3. News - Goldman Sachs backs Nvidia and Broadcom as top AI stocks to own

4. Startups - Top AI tools I use as a Venture Capitalist

5. Trends - EU's AI code of practice sets security requirements for AI companies

6. Other News - Claude for financial services

AI Cybersecurity $252B Opportunity: 3 Stocks to Watch

AI-enhanced attacks are outpacing traditional cyber defences, creating a $252 billion opportunity in cybersecurity by 2026. Detection delays for AI-driven breaches now average 290 days — far longer than traditional threats — highlighting the urgent need for next-gen solutions. Regulatory momentum, such as the EU’s NIS2 Directive and U.S. SEC rules, is accelerating the shift toward Zero-Trust Architectures (ZTA).

While chipmakers and hyperscalers dominate AI headlines, long-term upside may lie with companies embedding AI directly into security solutions. This week, we highlight Evolv Technologies, CyberArk Software, and Fortinet — one on our watchlist, and two nearing inclusion due to their strong fundamentals and momentum.

1. Evolv Technologies Holdings, Inc. $EVLV ( ▲ 5.24% )

• Sector / Industry: Industrials / Security & Protection Services

• AI Stack Layer: Application & Edge (AI in Security, Physical Threat Detection)

• Market Cap: $921m

• Performance YTD: +42.3%

• Total Score: 74*

• Relative Strength (RS) Score: 86*

• Ranking Status: ✔️ Watchlist*

🧠 What the Company Does
Evolv specialises in AI-powered physical security. Its advanced screening systems use a combination of artificial intelligence and sensor fusion to detect weapons and threats in real time — without the bottlenecks of traditional metal detectors. This allows for seamless security checks in high-traffic venues like stadiums, schools, and transport hubs. Its appeal lies in scalability, real-time threat detection, and a growing addressable market for non-invasive public safety tech.

💡 Why It Stands Out
Evolv Technologies is currently on our Watchlist, boasting a strong Total Score of 74.3 and a Relative Strength (RS) of 86 — signalling strong fundamentals and significant market interest. The company continues to see expanding adoption across entertainment, transport, and critical infrastructure. Despite qualifying for our Watchlist, its valuation remains stretched, reflected in a current Valuation Score of 0. Investors should factor this into risk assessments.

📉 Technical Snapshot
EVLV is currently testing its 50-day exponential moving average (EMA) on the daily chart. This level may act as near-term support; holding above it could signal continued strength, while a breakdown may suggest a pause in momentum.

2. CyberArk Software $CYBR ( ▲ 0.55% )  

• Sector / Industry: Technology / Software - Infrastructure

• AI Stack Layer: Security (AI in Identity and Access Management)

• Market Cap: $19.9B

• Performance YTD: +13.5%

• Total Score: 89

• Relative Strength (RS) Score: 71

• Ranking Status: 📊 Fundamental

🧠 What the Company Does
CyberArk is focused on Identity and Access Management (IAM) — a critical area as AI expands the attack surface across digital infrastructure. The company uses AI to secure privileged accounts and sensitive credentials, preventing unauthorised access within corporate systems. CYBR offers a strong case for recurring revenue growth, especially as enterprises shift to Zero-Trust security frameworks and adopt cloud-native architectures.

💡 Why It Stands Out
CyberArk scores a 89.0 Total Score, comfortably exceeding our 70 threshold for strong fundamentals. This reflects its robust financial quality, with projected revenue growth of 31.9% and EPS growth of 284.1%. Although its Relative Strength of 71 is just below our Watchlist threshold, it continues to edge closer — indicating rising market recognition.

📉 Technical Snapshot
CYBR recently broke below its 50-day EMA with elevated volume. Price action looks to be forming a bear flag pattern, suggesting the potential for a continuation lower unless the stock reclaims key moving averages.

3. Fortinet, Inc. $FTNT ( ▲ 0.48% )  

• Sector / Industry: Technology / Software - Infrastructure

• AI Stack Layer: Network & Connectivity (AI in Network Security and Threat Detection), Security

• Market Cap: $79.1B

• Performance YTD: +9.4%

• Total Score: 69

• Relative Strength (RS) Score: 87

• Ranking Status: 📈 Momentum

🧠 What the Company Does
Fortinet offers AI-driven solutions for network protection, threat detection, and secure infrastructure. Its flagship platform, FortiOS, powers zero-trust architectures and uses AI for behavioural analytics and micro-segmentation — key tools for managing risk across hybrid cloud and IoT environments. Fortinet has a strong brand presence and a highly integrated product stack that appeals to large enterprises and governments alike.

💡 Why It Stands Out
Fortinet stands out for its market momentum. Its RS Score of 87 signals strong investor interest, and its Financial Quality Score of 100 reflects exceptional business strength. While its Total Score of 69.1 narrowly misses our Watchlist threshold, its positioning within AI-led network security makes it a strong contender.

📉 Technical Snapshot
FTNT is trading in a defined range between $99 and $109. A breakout above or below this zone may offer the next directional clue.

🔍 Final Take

The AI revolution is creating urgent demand for advanced cybersecurity — and with it, new investment opportunities. Evolv Technologies, CyberArk Software, and Fortinet each showcase a different angle of strength: Watchlist qualification, outstanding fundamentals, and powerful momentum, respectively. As AI evolves as both threat and defence, these firms are well-placed to lead. As always, investors should stay mindful of broader macro conditions and sector-specific risks.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

_{*Methodology & Scores - All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). Total Score combines metrics for Sales and EPS Growth, Financial Quality, and Valuation, to assess overall business strength (out of 100). Relative Strength (RS) Score measures a stock’s price performance relative to the AI universe (173 AI-focused public companies). Ranking Status is assigned based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80.}

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TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS 

2 AI stocks for the $13 trillion software opportunity - The Motley Fool

3 agentic AI stocks to watch - Barchart

1 AI ETF for the new Nasdaq bull market - The Motley Fool

AI STOCKS & ETFs NEWS 

Goldman Sachs backs Nvidia and Broadcom as top AI stocks to own - TradingView - Goldman Sachs highlights Nvidia and Broadcom as leading AI stocks, initiating Buy ratings with targets of $185 and $315.

Nvidia to resume H2 GPU sales in China - Reuters - Nvidia plans to restart GPU sales in China in the second half of 2025, following previous trading restrictions in the region.

Trump announces $90B AI and energy investments in Pennsylvania - Investing.com - President Trump announced over $90 billion in investments for AI and energy in Pennsylvania, including data center projects and workforce training initiatives, expected to create tens of thousands of jobs.

AI STARTUPS

Top AI tools I use as a Venture Capitalist - Medium - AI tools are enhancing venture capital firms by automating deal flow, data entry, startup evaluation, decision-making, and performance monitoring.

The 7 newest unicorns in June 2025 - Techround - June 2025 saw 36 startups reach unicorn status across various sectors, including healthcare and tech, indicating a shift towards specialised investments in transformative technologies.

Former OpenAI CTO raises $2B for new AI startup - CNBC - Thinking Machines Lab, led by Mira Murati, has raised $2B to advance artificial intelligence research and enhance its application across various industries.

AI TRENDS

EU's AI code of practice sets security requirements for AI companies - Medianama - The EU's General-Purpose AI Code of Practice, published on July 11, 2025, outlines voluntary security, transparency, and risk management obligations for AI companies.

Grok 4 and the future of multi-agent AI - Medium - Elon Musk's xAI launched Grok 4, a multi-agent AI model emphasizing open-weight partnerships and on-premises deployment, enhancing control and performance.

OTHER

Claude for financial services - Anthropic - Claude by Anthropic is enhancing productivity and risk management in financial services by integrating advanced AI in banking, insurance, and fintech.

Harnessing AI in cryptocurrency trading - OneSafe - AI enhances cryptocurrency trading by swiftly analysing data, reducing emotional bias in decision-making, and improving risk management.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}