In partnership with

The AI Investing Pulse

May 15th, 2025

In this Week’s Edition:

1. Analysis - AI Cybersecurity Stocks: CrowdStrike & Palo Alto Take the Lead

2. Stock Ideas - MSFT, PLTR, NVDA: Dan Ives is Bullish on Palantir

3. News - AI Agents Bring Big Risks and Rewards for Investors

4. Startups - Google Launches New Initiative to Back Startups Building AI

5. Trends - Cost of AI Pays Power for the Future

6. Other News - Stock Market Trend Prediction Using Deep Network

AI Cybersecurity Stocks: CrowdStrike & Palo Alto Take the Lead

The ransomware that froze Marks & Spencer for almost three weeks did more than bruise a British retail icon. It confirmed a view already forming across buy-side desks: AI has become both the hacker’s sharpest tool and the enterprise’s most reliable shield. Similar breaches at the Co-op and Harrods have rippled through supply chains, pushed cyber-insurance premiums higher and—crucially for markets—unlocked fresh budget for autonomous defence platforms. Gartner now expects global cyber-security spend to grow 15 % in 2025, twice the pace of overall IT outlays.

Against that backdrop, two stocks dominate institutional watch-lists—and a handful of challengers are closing the gap.

CrowdStrike $CRWD ( ▲ 1.31% )  

Up 27.4 % year-to-date, CrowdStrike continues to pull customers deeper into the Falcon XDR ecosystem; the average client now runs six modules. The newest lure is Charlotte AI, a natural-language assistant that automates threat hunting. Wedbush reiterated an Outperform in March with a $475 target, citing reseller checks.

Management, meanwhile, talks openly about tripling annual recurring revenue (ARR) to $10 billion by 2031—a goal that underscores CrowdStrike’s transition from point product to full platform.

Palo Alto Networks $PANW ( ▼ 0.26% )  

Up 4.9% year-to-date, buoyed by a Deloitte partnership for Secure AI Services and the launch of Prisma AIR™, an AI analytics layer spanning firewall, SASE and cloud security. At roughly $190, the stock still trades at a premium multiple yet sits below its 2024 peaks even as billings compound near 13% a year. Talk of Palo Alto as the “cloud operating system for security” is gaining traction.

Where the Rest of the Field Stands

• Fortinet (FTNT) is pushing AI into FortiOS and boasts some of the sector’s fattest operating margins. It is up 9.3% year-to-date.

• Zscaler (ZS) layers AI into its zero-trust proxy and keeps revenue retention north of 120 %. It is up 35.5% year-to-date.

• CyberArk (CYBR) uses AI-enhanced identity controls to lift subscription mix above 70 % and grow ARR at double-digit rates. It is up 6.5% year-to-date.

• Okta (OKTA) is weaving generative-AI guidance into its workflows as it rebuilds trust after earlier breaches. It is up 56.5% year-to-date.

🔍 The AI Stock Tracker

Our in-house growth-weighted model runs twice weekly on 173 AI-linked names, combining a fundamentals composite with price momentum. To earn Watchlist status, a stock must score ≥ 70 on fundamentals and rank in the top 20 percent of momentum (RS ≥ 80).

• Fundamentals leaders (CRWD, CYBR, ZS, OKTA) all clear the 70+ composite hurdle but still sit below RS 80.

• Momentum leader (FTNT) boasts RS ≥ 80 yet lags on fundamentals < 70.

• Falling short (PANW) misses both thresholds.

Result: No cybersecurity names qualify for our Watchlist this week, but it is worth keeping an eye on CYBR as it nears the RS hurdle.

Looking Ahead

Investor enthusiasm for AI often centres on chipmakers and cloud hyperscalers, yet events this spring suggest the longer-lasting revenue stream may lie with the companies embedding AI into the locks, alarms and patrols of the digital world. Whether current valuations fully reflect that strategic importance is for the market to debate, but the need for autonomous cyber-defence appears set only to grow—breach by breach.

_{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.}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS 

MSFT, PLTR, NVDA: Dan Ives is Bullish on Palantir - Yahoo Finance

5 Mid-Cap AI Infrastructure Stocks Amid U.S.-China Tariff Deal Hope - Tradingview

3 US Artificial Intelligence Growth - Yahoo News

AI STOCKS & ETFs NEWS 

AI Agents Bring Big Risks and Rewards for Investors - Zdnet - The rise of autonomous AI agents offers significant opportunities for productivity and efficiency, but also poses risks related to privacy, bias, and regulatory uncertainty. 

Microsoft to Cut 3% of Global Workforce Amid AI Investment Focus - Business Standard -  Microsoft plans to reduce its workforce by 3%, approximately 6,000 employees, to streamline operations while maintaining investments in cloud and AI technologies for future growth.

Fortinet Unveils Next-Generation Firewalls - Yahoo Finance - Fortinet has launched its new FortiGate G series of next-generation firewalls, enhancing cybersecurity capabilities and performance for distributed enterprises.

AI STARTUPS

Google Launches New Initiative to Back Startups Building AI - Techcrunch - Google has introduced a program to support AI startups with early access to advanced AI models and various resources, aimed at fostering innovation in the AI sector.

AI Firm Perplexity Eyes $14 Billion Valuation with Fresh Funding Round - Reuters - Perplexity AI seeks $500 million funding, boosting its valuation to $14 billion. The company also plans to launch a web browser called Comet.

Adopt AI Secures $6 Mn Seed Funding - BWDisrupt - Adopt AI, a San Jose startup, has raised $6 million in seed funding for its no-code AI platform that simplifies agent creation and deployment, aiming to enhance business operations.

AI TRENDS

Cost of AI Pays Power for the Future - Yahoo News - The financial and energetic costs of developing and operating AI systems, emphasizing the need for sustainable practices as AI becomes increasingly pivotal across sectors.

The Future of AI: How It Affects Jobs, Privacy, and Everyday Life - Medium - The AI's implications on employment, privacy, and daily activities, highlighting job displacement, the need for new skills, privacy concerns, and the ethical uses of AI technologies.

OTHER

Stock Market Trend Prediction Using Deep Network - Nature -  The feasibility of using deep learning for stock market prediction and technical analysis.

PwC Releases Executive Guide on Agentic AI - Marktechpost -  PwC's executive guide highlights the strategic importance of agentic AI for enhancing operational efficiency and customer engagement, offering a roadmap for its deployment in enterprises.

Stay up-to-date with AI

The Rundown is the most trusted AI newsletter in the world, with 1,000,000+ readers and exclusive interviews with AI leaders like Mark Zuckerberg, Demis Hassibis, Mustafa Suleyman, and more.

Their expert research team spends all day learning what’s new in AI and talking with industry experts, then distills the most important developments into one free email every morning.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

_{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}