Not Palantir. Not Snowflake. This AI Software Stock Could Be the Biggest Winner of 2027.

Source The Motley Fool

Key Points

  • CrowdStrike is the second-largest cybersecurity pure play by market cap.

  • It's a founding member of Anthropic's Project Glasswing.

  • The relationship means it's working directly with companies that are developing some of the most advanced AI technology.

  • 10 stocks we like better than CrowdStrike ›

In the artificial intelligence software space, Palantir Technologies (NASDAQ: PLTR) and Snowflake (NYSE: SNOW) have given investors plenty of reasons to be excited.

Palantir has found success helping businesses and government agencies use AI to analyze information and make decisions. Data warehousing giant Snowflake, meanwhile, has benefited from growing demand for its cloud-based data platform, which allows companies to organize and use the enormous amounts of information that AI applications require.

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But there's another software company that could have an even bigger AI-driven opportunity in 2027 -- even though it's not primarily in what you'd think of as an AI business.

CrowdStrike (NASDAQ: CRWD) is the second-largest cybersecurity company, providing numerous companies with protection from digital threats. And as AI becomes increasingly used, the need for cybersecurity that can cope with AI-powered attacks could become one of the biggest growth opportunities in the technology industry.

Here's why CrowdStrike deserves a closer look.

Glass-walled office entrance featuring a red CrowdStrike logo, with a modern office interior and hallway visible in the background.

Image source: CrowdStrike.

AI is creating an enormous cybersecurity problem

One of the most interesting developments in artificial intelligence this year has been the introduction of Anthropic's Claude Mythos model.

This powerful AI system can identify software vulnerabilities that hackers might exploit to gain access to computer networks. That's useful for companies trying to strengthen their defenses, but it also raises an uncomfortable question: What happens when criminals get access to similarly powerful tools?

Anthropic's Project Glasswing was created to help organizations identify and repair their vulnerabilities before attackers can exploit them. The company has also expanded access to its advanced cybersecurity models through a verification program for qualified security professionals.

CrowdStrike is a founding member of Project Glasswing, alongside technology giants including Nvidia, Microsoft, and Amazon.

And it has been expanding its relationship with Anthropic. In September, CrowdStrike announced that its Falcon security platform would become available through the Anthropic Claude Marketplace. In October, it joined Anthropic's Critical Infrastructure Defense Program.

I think that's important because CrowdStrike isn't just waiting for AI-related cybersecurity spending to increase. It's working directly with companies that are developing some of the most advanced AI technology.

CrowdStrike's platform positions it to capitalize on a growing need

CrowdStrike's cloud-native Falcon platform helps businesses protect computers, servers, cloud applications, and other systems from cyberattacks. Falcon's software agents monitor device activity, while CrowdStrike's cloud-based technology analyzes data streams to identify suspicious behavior. That allows businesses and organizations to detect and respond to threats efficiently.

And CrowdStrike has been expanding what Falcon can do. The company offers security services covering identity protection, cloud workloads, threat intelligence, and AI applications. Customers can add these capabilities through additional subscription modules, giving CrowdStrike opportunities to increase the revenue it's deriving from existing relationships.

That's particularly valuable as businesses begin deploying AI agents that can access sensitive information and perform tasks without constant human supervision.

CrowdStrike has already introduced technology designed to monitor and control access for those AI agents.

The opportunity isn't limited to protecting companies from hackers using AI. Businesses also need to ensure their AI systems aren't creating new security problems.

CrowdStrike's growth is already accelerating

CrowdStrike delivered solid results in its fiscal second quarter, which ended July 31. Revenue rose 26% year over year to $1.47 billion. Annual recurring revenue (ARR), a measure of subscription revenue expected over a year, increased 25% to $5.84 billion.

The company also added a record $333 million in net new ARR during the quarter, a 51% increase from the previous year. Management raised its full-year net new ARR growth guidance to 34% at the midpoint, up 6.3 percentage points from its previous outlook.

And CrowdStrike is generating cash. Free cash flow reached $377 million in fiscal Q2, compared with $284 million a year earlier.

These figures provide evidence that demand for CrowdStrike's products is growing. They don't establish how much additional business Anthropic's technology will generate, but the company already has a substantial subscription business to build upon.

Is CrowdStrike the better AI software investment?

CrowdStrike stock is having a better year than either Snowflake or Palantir -- it's up 94% so far in 2026. I like CrowdStrike because it may benefit from the increasing adoption of AI regardless of which software companies emerge as the biggest winners. Palantir and Snowflake need businesses to continue adopting their particular platforms for their operations. But CrowdStrike serves a different requirement -- it protects the systems and information that those businesses depend upon.

CRWD Chart

CRWD data by YCharts.

The company has a growing subscription business, expanding partnerships with major AI developers, and a platform that addresses security needs that could become more demanding as AI technology improves.

Palantir and Snowflake are helping companies put AI to work. CrowdStrike is helping make sure those companies can do it safely.

Should you buy stock in CrowdStrike right now?

Before you buy stock in CrowdStrike, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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*Stock Advisor returns as of October 20, 2026.

Patrick Sanders has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, CrowdStrike, Microsoft, Nvidia, Palantir Technologies, and Snowflake. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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