AI is not just a trend but a core component of CrowdStrike and Nvidia’s business models, separating them from companies that merely ride the AI hype.
Key Points:
- CrowdStrike’s AI-Powered Falcon Platform:
- Fully cloud-based and modular to tailor customer needs.
- Provides real-time protection using AI and uses machine learning to improve from past data.
- Annual recurring revenue (ARR) reached $2.9 billion last quarter, a 37% YOY increase with a vision to reach $10 billion in 7-10 years.
- Dollar-Based Net Retention (DNBR) has consistently been above 120% since 2019.
- Cybersecurity market potential is projected to grow from $100 billion in 2024 to $225 billion in 2028.
- Nvidia’s Business Overview:
- Earned $10.3 billion last quarter primarily from selling graphics processing units and AI hardware/software to data centers.
- Data-center revenue surged by 171% YOY.
- Automotive revenue currently at $253 million but has a potential $300 billion market with the growth of autonomous vehicles.
- Operating revenue stood at $6.8 billion with an impressive 50% operating margin.
- Current P/E ratio is over 100, but this is projected to drop in the coming years.
Key Insight
While many companies leverage the AI buzzword to appear forward-thinking, CrowdStrike and Nvidia are deeply rooted in AI innovation, ensuring their lasting relevance in the market.
Why This Matters
The longevity and success of an AI-focused company are determined by its foundational investment in AI technologies, not just superficial inclusion. With CrowdStrike and Nvidia deeply integrating AI into their operational and growth strategies, they represent not only current market leaders but also potential long-term winners for investors.
