While the technology sector buys up artificial intelligence stocks like Super Micro Computer (SMCI) and Nvidia (NVDA), the smarter money may invest in cybersecurity stocks.
Hackers and scammers will use AI tools to target their victims. To protect against that, corporations need cybersecurity solutions. CrowdStrike Holdings (CRWD) has not lost many customers since it caused a global outage in mid-July. As a result, the firm should achieve strong annual recurring revenue of at least $10 billion in the next year.
SentinelOne (S) is another appealing cybersecurity software firm to consider.
In the cloud software sector, MongoDB (MDB) will likely break out above $300 in the next week. In May 2024, the stock fell from around $300 to nearly $200. In August, the firm reported Q2 a 12.8% year-on-year revenue increase. For fiscal year 2025, it expects to report non-GAAP net income per share of $2.33 – $2.47.
The selling pressure in MDB stock appears over. Although the valuation is fair, it is still several times above the sector median. However, the firm demonstrated strong growth. Analysts continue to issue positive EPS revisions.
Other software stocks to consider include Datadog (DDOG), Cloudflare (NET), and Snowflake (SNOW).