AUSTIN, Texas - CrowdStrike Holdings, Inc. (NASDAQ: NASDAQ:CRWD), a leader in cloud-delivered endpoint and cloud workload protection, has announced its collaboration with NVIDIA (NASDAQ:NVDA) to enhance the security of generative AI applications. The integration of CrowdStrike's AI-native Falcon cybersecurity platform with NVIDIA NIM Agent Blueprints aims to provide additional safeguards for developers working on generative AI projects.
NVIDIA's NIM Agent Blueprints are part of its AI Enterprise software stack, designed to assist developers in creating enterprise-level generative AI applications, such as chatbots and drug discovery models, by providing reference applications and leveraging NVIDIA NIM microservices. CrowdStrike's support for these blueprints will enable developers to build these applications with an emphasis on security and efficiency, utilizing the latest open-source foundational models offered by NVIDIA NIM.
According to Daniel Bernard, CrowdStrike's Chief Business Officer, the company is at the forefront of securing AI systems that are propelling the generative AI revolution. CrowdStrike's Falcon platform is expected to provide the necessary tools for enterprises to enhance the development and security of generative AI applications.
Justin Boitano, NVIDIA's Vice President of Enterprise AI Software Products, emphasized the importance of security in creating enterprise-grade generative AI applications, stating that the support of NVIDIA NIM Agent Blueprints on CrowdStrike will allow companies to develop core generative AI use cases in alignment with business security requirements.
CrowdStrike's Falcon platform is known for its cloud-native architecture and AI-driven cybersecurity solutions, which include real-time indicators of attack, threat intelligence, and automated protection. The company's collaboration with NVIDIA is part of its ongoing efforts to innovate and provide advanced security solutions for the rapidly growing field of generative AI.
This announcement is based on a press release statement and reflects the companies' shared vision of accelerating secure generative AI development for enterprise applications.
In other recent news, CrowdStrike Holdings, a leader in the cybersecurity space, has been the focus of numerous analyst assessments and adjustments. Citi reaffirmed a Buy rating on CrowdStrike, noting a manageable scope of liability in the Delta litigation. This followed a detailed evaluation of the company's potential legal liabilities, leading to the conclusion that financial responsibilities are likely to be upheld through contractual law if the case goes to trial.
On a similar note, Rosenblatt Securities maintained a Buy rating on CrowdStrike but reduced its price target to $330 from $350, reflecting a more conservative stance following a recent IT outage. Rosenblatt's revised estimates for fiscal years 2025 and 2026 anticipate near-term challenges, including discounting, service credits, and contract concessions.
Jefferies echoed this sentiment, maintaining a positive outlook on CrowdStrike and raising the price target to $315. The firm predicts a year-over-year increase in CrowdStrike's annual recurring revenue (ARR) of 31%, in line with the consensus estimate.
BofA Securities also maintained a Buy rating on CrowdStrike, anticipating a second-quarter revenue growth of 28% despite the recent global IT outage. The firm also forecasts a 50% sequential decrease in net new Annual Recurring Revenue (ARR).
Lastly, Barclays (LON:BARC) reaffirmed its Overweight rating on CrowdStrike, adjusting its expectations for the company's net new Annual Recurring Revenue (ARR) to $149 million for the second quarter of fiscal 2025. Despite near-term challenges, the firm views CrowdStrike as an attractive long-term investment within the cybersecurity industry.
InvestingPro Insights
In light of CrowdStrike Holdings, Inc.'s (NASDAQ: CRWD) recent announcement regarding its collaboration with NVIDIA to enhance the security of generative AI applications, investors may find the following InvestingPro Data and Tips valuable for understanding the company's financial health and market position.
InvestingPro Data reveals that CrowdStrike has a market capitalization of approximately $65.56 billion, underscoring its significant presence in the cybersecurity industry. The company's P/E ratio stands at a high 489.78, reflecting investor expectations of future growth. Additionally, the substantial revenue growth of 34.26% over the last twelve months as of Q1 2023 indicates CrowdStrike's expanding business operations and market reach.
Two InvestingPro Tips that are particularly relevant to the company's current developments include:
- CrowdStrike holds more cash than debt on its balance sheet, providing financial stability and the potential for investment in new initiatives such as the collaboration with NVIDIA.
- Analysts predict the company will be profitable this year, which aligns with CrowdStrike's strategic partnerships and innovations aimed at capitalizing on the growing demand for secure AI technologies.
Moreover, CrowdStrike's focus on securing AI systems is timely, as the company's strong revenue growth suggests it is well-positioned to address the security needs of the burgeoning generative AI sector. Investors interested in deeper insights can explore additional InvestingPro Tips, with 15 more listed on the platform, offering a comprehensive look at CrowdStrike's financial and market performance.
To get a more detailed analysis and additional InvestingPro Tips for CrowdStrike, visit the dedicated page on InvestingPro at: https://www.investing.com/pro/CRWD.
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