{"id":241381,"date":"2025-09-20T12:04:23","date_gmt":"2025-09-20T12:04:23","guid":{"rendered":"https:\/\/www.europesays.com\/us\/241381\/"},"modified":"2025-09-20T12:04:23","modified_gmt":"2025-09-20T12:04:23","slug":"meet-the-skyrocketing-artificial-intelligence-ai-stock-thats-leaving-nvidia-in-the-dust-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/241381\/","title":{"rendered":"Meet the Skyrocketing Artificial Intelligence (AI) Stock That&#8217;s Leaving Nvidia in the Dust"},"content":{"rendered":"\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">An improving growth profile has driven Cloudflare&#8217;s stock price gains this year.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">Shares of the cloud security company now trade at an expensive valuation.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\">A massive opportunity in edge AI applications could justify that valuation.<\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=90e2f142-2899-48f7-b54e-55290b13b4e2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-nonbbn-kp%3Faid%3D8867%26source%3Disaedikp0000053%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dkeypoints_pitch_feed_yahoo%26ftm_pit%3D17670\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 stocks we like better than Cloudflare \u203a;elm:context_link;itc:0;sec:content-canvas\">10 stocks we like better than Cloudflare \u203a<\/a><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1090901\"><strong>Nvidia<\/strong>, which pioneered the artificial intelligence (AI) accelerator chip space, has been one of the top performing stocks on the market in the past three years, delivering gains of more than 1,200% on the back of the remarkably strong demand for its graphics processing units (GPUs), which are widely used for training AI models and running inference applications.<\/p>\n<p class=\"yf-1090901\">That&#8217;s why Nvidia&#8217;s returns of 32% so far in 2025 may appear lukewarm to investors. After all, with a <a href=\"https:\/\/www.fool.com\/terms\/m\/market-cap\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cc8057ab-41ad-447a-9fac-e61e2931a059\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:market cap;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">market cap<\/a> in excess of $4.3 trillion, it is now the world&#8217;s largest company. So, expecting Nvidia to replicate the eye-popping returns that it has clocked in recent years isn&#8217;t reasonable, especially considering that its growth rate, though healthy, <a href=\"https:\/\/www.fool.com\/investing\/2025\/08\/21\/heres-why-im-not-buying-the-dip-in-nvidias-stock?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cc8057ab-41ad-447a-9fac-e61e2931a059\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:is relatively slower than it was before;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">is relatively slower than it was before<\/a>.<\/p>\n<p class=\"yf-1090901\">However, there are smaller companies out there capitalizing on the fast-growing demand for AI hardware that can still deliver phenomenal returns to investors. One of these is <strong>Cloudflare<\/strong> (NYSE: NET), which has significantly outperformed Nvidia so far this year &#8212; it&#8217;s up by a remarkable 110% &#8212; and has the potential to fly higher.<\/p>\n<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Person holding a smartphone and smiling.\" loading=\"eager\" height=\"640\" width=\"960\" class=\"yf-1gfnohs loader\"\/> Image source: Getty Images         <\/p>\n<p class=\"yf-1090901\">Cloudflare was traditionally known for offering content delivery network (CDN) services and a reverse proxy network that helps make internet connections faster, secure, and more reliable. Its cloud security solutions also secure data across public cloud networks, private cloud networks, and software-as-a-service (SaaS) applications, among other systems.<\/p>\n<p class=\"yf-1090901\">However, the AI trend has helped it unlock a lucrative growth avenue. It is now leveraging its massive global network of servers to deploy graphics processing units (GPUs) and bring edge AI processing capabilities to its customers. The company&#8217;s network spans 300 cities, and management said last year that the entire network would be equipped with GPUs to run AI inference applications closer to end users, which will help reduce latency and improve performance.<\/p>\n<p class=\"yf-1090901\">Based on what management said on the company&#8217;s latest earnings conference call, Cloudflare has achieved that goal. And demand for its Workers AI serverless GPU platform &#8212; which allows customers to run AI models on Cloudflare&#8217;s network and forego investing in and managing expensive hardware &#8212; has been solid.<\/p>\n<p> Story Continues  <\/p>\n<p class=\"yf-1090901\">Cloudflare customers can access more than 50 AI models on the Workers AI platform to build applications based on their needs. They can also store large datasets on the Cloudflare network at competitive costs. Importantly, Workers AI has a pay-as-you-go business model, so customers aren&#8217;t locked into subscription contracts.<\/p>\n<p class=\"yf-1090901\">This consumption-oriented model is working well for Cloudflare as it helps the company lower the barrier to entry for companies looking to run AI inference in the cloud. The company landed several multimillion-dollar contracts for Workers AI in the second quarter, which explains the impressive 39% year-over-year increase in its remaining performance obligations (RPO) to almost $2 billion.<\/p>\n<p class=\"yf-1090901\">This metric refers to the total value of a company&#8217;s unfulfilled contracts, and it&#8217;s worth noting that Cloudflare&#8217;s RPO growth substantially exceeded the 28% year-over-year spike in its Q2 revenue to $512 million. What this means is that Cloudflare is landing new contracts at a faster pace, setting up a nice revenue pipeline for the long run that should lead to accelerating top-line growth. Moreover, the analysts at Fortune Business Insights forecast that demand for edge AI will increase at an impressive annualized rate of 33% through 2032.<\/p>\n<p class=\"yf-1090901\">In that context, I won&#8217;t be surprised to see Cloudflare&#8217;s revenue pipeline improve further, especially considering that there is a tremendous need for GPU-powered AI cloud computing capacity.<\/p>\n<p class=\"yf-1090901\">Cloudflare&#8217;s big rally so far in 2025 has left it trading at 40 times sales. That&#8217;s expensive when compared to Nvidia&#8217;s price-to-sales ratio of 26. However, Cloudflare&#8217;s RPO growth is accelerating. The company reported a 37% year-over-year increase in the metric in Q2 2024, indicating that its future revenue pipeline growth is ticking up.<\/p>\n<p class=\"yf-1090901\">As a result, it wouldn&#8217;t be surprising to see Cloudflare&#8217;s top-line growth accelerate in the future &#8212; which is precisely what analysts are predicting.<\/p>\n<p>  <a href=\"https:\/\/ycharts.com\/companies\/NET\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NET Revenue Estimates for Current Fiscal Year Chart\" loading=\"lazy\" height=\"380\" width=\"720\" class=\"yf-1gfnohs loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/NET\/sales_est_0y\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:NET Revenue Estimates for Current Fiscal Year;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">NET Revenue Estimates for Current Fiscal Year<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts.<\/a>    <\/p>\n<p class=\"yf-1090901\">For some perspective, Nvidia&#8217;s top-line growth rate is expected to slow down.<\/p>\n<p>  <a href=\"https:\/\/ycharts.com\/companies\/NVDA\/chart\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"NVDA Revenue Estimates for Current Fiscal Year Chart\" loading=\"lazy\" height=\"380\" width=\"720\" class=\"yf-1gfnohs loader\"\/><\/a> <a href=\"https:\/\/ycharts.com\/companies\/NVDA\/sales_est_0y\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:NVDA Revenue Estimates for Current Fiscal Year;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">NVDA Revenue Estimates for Current Fiscal Year<\/a> data by <a href=\"https:\/\/ycharts.com\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:YCharts.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">YCharts.<\/a>    <\/p>\n<p class=\"yf-1090901\">So, there is a good chance that Cloudflare may be able to justify its expensive sales multiple by clocking faster growth than the AI chip leader. That&#8217;s why investors who have a tolerance for risk and a willingness to pay a premium valuation for this AI stock should consider accumulating it, even after its remarkable rally this year.<\/p>\n<p class=\"yf-1090901\">Before you buy stock in Cloudflare, consider this:<\/p>\n<p class=\"yf-1090901\">The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a0<strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8c34d1e4-fd7f-409f-8404-6a7a84f9cd2c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D17500&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cc8057ab-41ad-447a-9fac-e61e2931a059\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:10 best stocks;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">10 best stocks<\/a><\/strong> for investors to buy now\u2026 and Cloudflare wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<p class=\"yf-1090901\">Consider when <strong>Netflix<\/strong> made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation,\u00a0<strong>you\u2019d have $651,345<\/strong>!* Or when <strong>Nvidia<\/strong> made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, <strong>you\u2019d have $1,080,327<\/strong>!*<\/p>\n<p class=\"yf-1090901\">Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,058% \u2014 a market-crushing outperformance compared to 189% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p class=\"yf-1090901\"><a class=\"link \" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8c34d1e4-fd7f-409f-8404-6a7a84f9cd2c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001088%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17500%26ftm_veh%3Darticle_pitch_feed_yahoo%26company%3DCloudflare&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=cc8057ab-41ad-447a-9fac-e61e2931a059\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See the 10 stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\"><strong>See the 10 stocks \u00bb<\/strong><\/a><\/p>\n<p class=\"yf-1090901\">*Stock Advisor returns as of September 15, 2025<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/author\/2139\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Harsh Chauhan;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Harsh Chauhan<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cloudflare and Nvidia. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/p>\n<p class=\"yf-1090901\"><a href=\"https:\/\/www.fool.com\/investing\/2025\/09\/20\/the-skyrocketing-ai-stock-thats-leaving-nvidia-in\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Meet the Skyrocketing Artificial Intelligence (AI) Stock That&#039;s Leaving Nvidia in the Dust;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Meet the Skyrocketing Artificial Intelligence (AI) Stock That&#8217;s Leaving Nvidia in the Dust<\/a> was originally published by The Motley Fool<\/p>\n","protected":false},"excerpt":{"rendered":"An improving growth profile has driven Cloudflare&#8217;s stock price gains this year. Shares of the cloud security company&hellip;\n","protected":false},"author":3,"featured_media":241382,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,738,12993,97615,44067,1671,158,67,132,68],"class_list":{"0":"post-241381","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-cloudflare","11":"tag-graphics-processing-units","12":"tag-growth-rate","13":"tag-nvidia","14":"tag-technology","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115236533889193686","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/241381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=241381"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/241381\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/241382"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=241381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=241381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=241381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}