This Artificial Intelligence (AI) Cloud Stock Has Shot Up 55% in 2025. Can It Still Soar Higher?

Core Viewpoint - Cloudflare has experienced a significant stock increase of 55% this year, driven by the growing demand for its AI-focused offerings [1] Company Performance - Cloudflare's revenue for 2024 reached $1.67 billion, marking a 29$0.75 per share, surpassing original guidance [4] - The number of customers generating over $100,000 in annualized revenue increased by 27$1.69 billion, indicating a robust revenue pipeline [8] AI Integration - Cloudflare has deployed GPUs across its network to enable customers to run AI workloads in the cloud, enhancing customer spending on its platform [2][6] - The Workers AI platform allows customers to build AI applications without heavy infrastructure investments, contributing to increased customer engagement [6][7] Future Outlook - The growth in RPO suggests that Cloudflare is signing more contracts than it is fulfilling, which could lead to stronger top-line growth in the future [9] - The cloud infrastructure-as-a-service market, targeted by Cloudflare's GPU-based AI services, is projected to generate $580 billion in revenue by 2030 [12] - Cloudflare's ability to deliver better-than-expected results and raise guidance will be crucial for justifying its current high valuation [10][11]