2 Stellar AI Stocks Set to Soar in 2024: UiPath and CrowdStrike

Investors looking for clever ways to leverage the artificial intelligence (AI) revolution might find exceptional opportunities in companies that excellently integrate AI into their offerings. Two companies that stand out in this domain are UiPath and CrowdStrike. Both are poised to continue their strong performance into 2024, having already established impressive tracks in 2023.

1. UiPath

UiPath has carved a niche in the technology sector with its robotic process automation (RPA) software, which empowers users to automate monotone, routine tasks such as document management. The integration of AI into its RPA platform broadens its capabilities, making more complex processes eligible for automation. UiPath also provides monitoring tools that help businesses identify processes ripe for automation.

The RPA market, still in early adoption stages, has enormous growth potential. Polaris Market Research assessed the RPA market at approximately $2.66 billion in 2022 but projects it could swell to $66 billion by 2032, indicating a nearly 38% compound annual growth rate (CAGR). With UiPath's annual recurring revenue reaching $1.38 billion, a 24% increase in the third quarter of fiscal year 2024, the company has a significant share of the RPA market and is consistently expanding its reach.

Considering the expected growth and the stock's reasonable valuation, UiPath is shaping up to be a wise investment choice. Its growth trajectory coupled with its current valuation supports the idea that now might just be the start of a significant upward trend, making UiPath a prime pick for investors in 2024 and the years to follow.

2. CrowdStrike

CrowdStrike, an industry leader in cybersecurity, integrates AI into its services from the start. Its forefront technology, endpoint protection, secures network entry points like laptops or smartphones against cyber threats. Its AI-driven tech swiftly identifies and mitigates attacks without human interference.

Moreover, CrowdStrike isn't just about one product—they offer a suite of over 20 different cybersecurity solutions. Customers usually increase their spending by incorporating additional modules over time. A significant ratio of its clients—63%—use five or more of its products, while 26% utilize seven or more.

The total market opportunity for CrowdStrike in 2024 is estimated at an immense $100 billion, with expectations to surge to $225 billion due to product launches and growth in existing segments. With its annual recurring revenue up by 35% to $3.15 billion in Q3 of fiscal year 2024, CrowdStrike demonstrates robust growth prospects.

While the stock commands a premium valuation at nearly 22 times sales, its exceptional and consistent financial performance justifies the high price. Although not a bargain play, confidence in CrowdStrike's ongoing growth suggests that it is set to outperform the market over a five-year span.

Investing, ArtificialIntelligence, Cybersecurity