There’s a reason why investors have been piling in to cybersecurity firm CrowdStrike (CRWD:NASDAQ) for months. As artificial intelligence shapes the tech landscape the Austin, Texas-based business has raised hopes that it can leverage AI in a not dissimilar way that Nvidia (NVDA:NASDAQ) is.

In 2023, the stock rallied 143% and it is now up nearly 50% this year after surging 23% overnight on forecast-busting earnings and strong guidance.

Real deal Nvidia declares AI ‘tipping point’ as earnings smash forecasts

CrowdStrike reported fourth quarter 20024 (to 31 Jan) earnings per share of $0.95, $0.13 better than the analyst consensus of $0.82, on $845.3 million revenue, also firmly above consensus estimates of $839.1 million.

GUIDANCE GIVES STOCK FUEL

Better still, CrowdStrike’s steer on fiscal 2025 has heightened hopes for more knockout results to come. The now $88 billion company sees Q1 2025 EPS of $0.89 to $0.90 versus the analyst consensus of $0.82, on $902.2 million to $905.8 million. Analyst consensus had been pitched at $898.8 million.

That now implies full year 2025 EPS of $3.77 to $3.97 versus the analyst consensus of $3.76, with revenues anticipated at between $3.92 billion to $3.99 billion versus analyst consensus of $3.94 billion. Last year it posted $3.06 billion.

Analysts at Evercore ISI couldn’t contain their enthusiasm, upping their own estimates and significantly raising the price target to $405 from the previous $255.

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