CrowdStrike-Forget the Correction: 2 Artificial Intelligence Stocks That Are Still Worth Buying Anyway

Market Overview - The U.S. stock market has had a challenging start to 2025, with the S&P 500 narrowly avoiding a correction, the Dow Jones declining, and the Nasdaq Composite officially in a correction after a brief bear market [1] - Contributing factors include President Donald Trump's new tariff plan and the expected pushback from investors [1] Company Analysis: Alphabet - Alphabet, which owns Google, YouTube, Waymo, and DeepMind, has seen a significant decline since its all-time high on February 4, making it a more attractive investment at current prices [3] - Google Search remains the primary revenue driver, generating $54 billion in Q4, a 12% year-over-year increase, accounting for 56% of total revenue [4] - Alphabet's total revenue, including YouTube ads and Google Network, constitutes 75% of its overall revenue [4] - AI advancements have created growth opportunities in Google Cloud and office software, with Google Cloud's market share increasing from 4% to 12% over the past six years [5] - Alphabet's vertical approach to AI allows for faster innovation and implementation compared to competitors reliant on third-party solutions [6] - A new contract with the U.S. government offers office software at a 71% discount to Microsoft Office, potentially leading to longer-term contracts if performance is proven [8] - With a price-to-earnings (P/E) ratio under 20, Alphabet's stock is considered a bargain for long-term investors [9] Company Analysis: CrowdStrike - CrowdStrike has pioneered a cloud-native, AI-first approach to cybersecurity since 2011, providing it with a significant data advantage over newer competitors [10] - The company has established a strong customer base, with 62 of the Fortune 100 using its services and over 20 deals of at least$ 10 million secured in Q4 [11] - CrowdStrike's platform has shown effectiveness, achieving over $1 billion in subscription revenue for the first time in Q4, with 80% gross margins [12] - The total addressable market (TAM) for AI-native security is estimated at$ 116 billion in 2023, projected to grow to $250 billion by 2029, reflecting a compound annual growth rate of 16.5% [13] - CrowdStrike's growth trajectory is expected to continue, with consistent investments likely yielding good long-term returns despite potential near-term volatility [14]