We recently compiled a list of the Top 12 Trending AI Stocks on Latest News & Reviews. In this article we are going to look at where CyberArk Software Ltd. (NASDAQ:CYBR) stands against the other trending AI stocks.
Donald Trump appears to be the spark that will take investments in artificial intelligence to new heights. Just days after rescinding an executive order to regulate AI risks, the US president unveiled a $500 billion private sector initiative. Stargate is the project that underlines how companies are racing against time to position themselves amid the AI revolution.
“The Stargate Project is a new company that plans to build a new AI infrastructure for OpenAI in the United States,” OpenAI, Oracle and SoftBank said in a joint statement. “This project will not only support the reindustrialization of the United States, but also provide a strategic capability to protect the national security of America and its allies.”
The new AI initiative, which involves several leading AI developers including ChatGPT maker OpenAI, paves the way for the construction of data centers needed to power and support various AI models. With Goldman Sachs estimating that AI will account for 19% of data center energy demand by 2028, tech giants are rushing to build and secure data center computing capacity.
The growing investment comes amid significant technological advances in AI, especially in machine learning and generative AI models such as ChatGPT. Investments are expected to soar as companies try to gain an edge in the revolution and strengthen their competitive advantage. However, it is unclear whether these investments will pay off in proportion.
The cost of training a single frontier AI model is increasing exponentially, from $1,000 in 2017 to nearly $200 million in 2024. The increase comes from consistent returns to scale in AI model training data, compute capacity, and model complexity. Although unit costs per computer operation have fallen rapidly over the same period, costs could still reach billions of dollars by 2030. By the mid-2030s, the hardware cost of the world’s AI infrastructure could exceed $1 trillion.
Amid growing concerns about costs, physical artificial intelligence has emerged as the next frontier in AI investments. Companies are increasingly investing in robotics manufacturers, automotive suppliers and specialty semiconductor companies.
AI technology started with search bots and has since evolved into “agentic AI,” which includes research assistants and customer support agents. Investors exploring its cutting-edge technology are now focusing on real-world interactions with autonomous devices that use artificial intelligence, such as self-driving cars, drones and robot nurses.
“As you get into 2025, agentic AI is the next turning point here before you get to that physical AI moment… just like everything else in the world, you have to crawl before you can walk and then run,” said CFRA senior equity analyst Angelo Zino
The rising investment around AI has also given rise to exciting investment opportunities. Likewise, investors are increasingly competing for positions in tech giants and little-known companies with exposure to revolutionary technology.
Our Methodology
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
A data center with a repetitive design of computer servers, demonstrating the companies’ efficient and secure IT infrastructure.
Number of hedge fund holders: 51
CyberArk Software Ltd. (NASDAQ:CYBR) is the global leader in identity security. Centered on intelligent privilege controls, it provides the most comprehensive security offering for any human or machine identity for enterprise applications, distributed workforces, and hybrid cloud environments. Analysts at KeyBanc reaffirmed their positive market sentiment on the company on January 21 by raising the price target from $355 to $400, while maintaining an Overweight rating.
KeyBanc analysts remain confident in CyberArk Software Ltd.’s prospects. (NASDAQ:CYBR) in the identity market, especially with the integration of CyberArk Privileged Access Manager (PAM) and Microsoft Defender for Identity. The integration allows organizations to benefit from a comprehensive view of their entire identity security landscape so they can respond to threats faster and more effectively.
Security Operations Center (SOC) and Identity teams will gain deeper investigative capabilities by connecting data from disparate systems, including deeper remediation options, more accurate identification of attack paths, and faster and more efficient threat hunting efforts. These combined capabilities enable greater cyber resilience.
In short, CYBR is in 8th place on our list of trending AI stocks on the latest news and ratings. While we recognize CYBR’s potential as an investment, our belief lies in the belief that AI stocks hold great promise for delivering high returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than CYBR but trades at less than five times earnings, check out our report on the cheapest AI stocks.
READ NEXT: 20 Best AI Stocks to Buy Now And Complete list of 59 AI companies with a market capitalization under $2 billion.
Disclosure: None. This article originally appeared on Insider Monkey.
