1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $190 and Hold for the Long Term

Core Viewpoint - Palo Alto Networks is leveraging artificial intelligence to enhance its cybersecurity offerings and has reported accelerated revenue growth in its fiscal 2025 third quarter, indicating a successful shift in business strategy [2][8]. Group 1: AI-Powered Product Portfolio - Palo Alto Networks has a diverse range of cybersecurity products across three main platforms: Cloud security, network security, and security operations, with a strong emphasis on integrating AI to improve threat detection and response [4]. - The Cortex XSIAM solution exemplifies this strategy, allowing organizations to automate cybersecurity processes, significantly reducing the median time to remediate incidents from days to under 10 minutes for 60% of its users [5][6]. - The company has also introduced Prisma AIRS, a new platform aimed at securing sensitive data in AI applications, with an estimated addressable market of $15 billion [7]. Group 2: Financial Performance and Growth - In the fiscal 2025 third quarter, Palo Alto generated $2.3 billion in total revenue, reflecting a 15% year-over-year increase, which is an acceleration from the previous quarter's 14% growth [8]. - The next-generation security (NGS) segment, which includes AI products, saw its annual recurring revenue (ARR) rise by 34% to a record $5.1 billion during the same quarter [9]. - The company is focusing on "platformization" to consolidate its offerings, with 1,250 of its top 5,000 customers officially platformed, marking a nearly 39% increase year-over-year [10][11]. Group 3: Market Position and Valuation - Despite its leadership in the cybersecurity sector, Palo Alto's stock trades at a significant discount compared to its competitor CrowdStrike, with a price-to-sales (P/S) ratio of 14.9, which is 45% lower than CrowdStrike's 27.3 [13]. - Palo Alto aims to nearly triple its NGS ARR to $15 billion by 2030, supported by extensive platformization efforts, indicating substantial growth potential [16]. - The addressable market for Cortex XSIAM is valued at $40 billion, significantly higher than its current annual bookings, further extending the company's growth runway [16].