TSP Weekly Tech Stock Update—May 24, 2025
This Week: CRWD hits new all-time high, RBRK at new post-IPO high, Goldman upbeat on Microsoft's AI roadmap, Wm Blair likes OneStream, SNOW/WDAY/PANW earnings reviews, NTNX/ZS earnings previews & more
Hello from Rob…
—On the Palo Alto Networks (PANW, $186.75) FQ3 (April) earnings call this week, CEO Nikesh Arora talked about how AI represents a major new tailwind for cybersecurity and made the case for platformizations:
The urgency to adopt AI is omnipresent in all of our customers. It's becoming a strategic imperative, as the risk of inaction is too high. During every conference, every customer conversation, the topic of AI transformation is more and more frequent.
What's fascinating is this is actually creating a higher sense of urgency amongst our customers to undertake their technology transformation—transformation that requires a fundamental change in their infrastructure.
Traditional IT architectures weren't built for the scale, speed or complexity of AI. To truly capitalize on AI's potential, enterprises need modern cloud-delivered platforms that can ingest vast amounts of data and operate in real-time at scale.
We're seeing customers who were previously delaying their cloud migrations are now reaccelerating their investment. This is good news for cybersecurity.
As AI becomes more deeply integrated into our customers' businesses, the need to protect the underlying data models and infrastructure will become paramount.
Over the next year, an estimated $300 billion+ will be spent on AI infrastructure alone. That kind of spend doesn't just power models. We're hard at work enabling secure adoption of this next wave of AI-powered applications.
This is precisely why the industry must change the paradigm, shifting away from today's fragmented security landscape and towards consolidation.
The cost of fragmentation is friction. Friction causes latency. Latency is the enemy of real-time cybersecurity. Now more than ever, bringing data together into a unified platform is critical.
At its core, security is a data problem. We believe our depth and breadth of data is amongst the largest in the industry (and it's something that point solutions simply cannot access). This leads to superior threat detection efficacy, reduced false positives and faster incident response times, all critical metrics for our customers.
*Inside This Issue: Google I/O 2025 Overview
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