Ark Investment Management CEO Cathie Wood has made a bold statement, predicting that software companies will be the next big opportunity in artificial intelligence (AI) and could potentially generate $8 in revenue for every $1 spent on chips from leading suppliers like Nvidia. This prediction has led Wood to invest heavily in private AI software companies like OpenAI and Anthropic, along with Tesla, the largest holding in the flagship Ark Innovation ETF. With this in mind, investors are eager to identify potential winners in the AI software sector, and two companies that stand out are CrowdStrike and Meta Platforms.
CrowdStrike is a leader in AI-powered cybersecurity, with unique lightweight security architecture and a strong reliance on AI to autonomously thwart attacks. The company’s AI models make over 180 million indicator-of-attack decisions every second, constantly analyzing the motive and intent of attackers. In addition, CrowdStrike’s platform approach to cybersecurity, covering all bases through its 28 modules, has resonated with customers. Businesses using CrowdStrike can save $6 for every $1 invested in consolidating their cybersecurity needs on the platform, making it a financially prudent choice.
Meta Platforms, on the other hand, is utilizing AI in various aspects of its business, including curating content feeds on Facebook and Instagram, and developing a large language model (LLM) called Llama. This LLM is open-source, allowing developers to build their own AI applications and contribute to enhancing Meta’s existing platforms. The company has launched a chatbot called Meta AI, powered by Llama 3, which provides users with personalized responses and recommendations. Meta stock, trading at a relatively low price-to-earnings ratio compared to the Nasdaq-100 index, presents an appealing investment opportunity.
Looking ahead, both CrowdStrike and Meta Platforms are well-positioned to capitalize on the growing AI software market. As AI technology advances and creates new opportunities, these companies are poised to benefit and drive further growth. Investors seeking exposure to the AI software sector may find CrowdStrike and Meta Platforms to be compelling investment options.
In conclusion, as Cathie Wood touts software companies as the next big AI opportunity, investing in companies like CrowdStrike and Meta Platforms could prove to be rewarding. With their strategic focus on utilizing AI technology to enhance cybersecurity and social media platforms, these companies are primed for success in the evolving landscape of AI software.