3 Artificial Intelligence (AI) Stocks Ripe to Be One of the Next “Magnificent Seven”

How important was the so-called “Magnificent Seven” in 2023? Well, according to S&P Senior Index Analyst Howard Silverblatt, it was very important. Consider this: The Magnificent Seven — Apple, Nvidia, Amazon, Microsoft, Alphabet, Meta Platforms, and Tesla — accounted for more than 60% of the S&P 500‘s total return of 26%. Indeed, if those seven stocks were excluded, the index would have only returned 7.6%, making 2023 a below-average year for the benchmark index.

Yet, as important as the Magnificent Seven may be, investors shouldn’t get tunnel vision; there are many other stocks worthy of their attention. Let’s have a look at three such names.

1. CrowdStrike Holdings

First up is CrowdStrike Holdings (NASDAQ: CRWD). CrowdStrike’s stock is one of the top-performing Nasdaq-100 names so far this year, having registered a 12% gain as of this writing. The stock is also up almost 180% over the last 12 months.

And why has the stock been on fire? In short, it’s down to the old rules of supply and demand. CrowdStrike is one of the world’s leading cybersecurity companies. Through the use of artificial intelligence (AI), the company provides its customers with cloud-based security modules that protect networks, data, and endpoints.

The need for this protection is increasing. Organizations are desperate to secure their digital assets due to the rapid rise in cyberattacks, ransomware, and data breaches.

In light of this situation, CrowdStrike’s customer base is exploding, and its revenue is skyrocketing. As of its most recent quarter (the three months ended on Oct. 31, 2023), CrowdStrike reported revenue of $786 million, up 35% from a year earlier. Moreover, $733 million of that revenue — some 93% — was subscription-based.

Those improving fundamentals are driving CrowdStrike’s stock back toward its all-time high. Growth-oriented investors should take note that CrowdStrike remains primed to cash in on the rapid growth of…