Industry Overview - The AI-driven bull run that began in 2023 and 2024 has continued into 2025, with strong momentum in the AI infrastructure segment [2] - The demand for AI infrastructure remains robust, supported by a bullish market scenario [2] Capital Expenditure Trends - Four of the "magnificent 7" stocks are set to invest $380 billion in 2025 for AI infrastructure development, representing a 54% year-over-year increase in capital spending [3] - Projections indicate that AI infrastructure capital expenditure will exceed $1 trillion by 2028, with estimates reaching a cumulative total of $5 trillion by 2030 [4] Investment Recommendations - Five small and mid-cap stocks are highlighted as potential beneficiaries of the AI boom in 2026: Calix Inc. (CALX), Qualys Inc. (QLYS), Innodata Inc. (INOD), Five9 Inc. (FIVN), and UiPath Inc. (PATH) [5][10] Company Profiles Calix Inc. (CALX) - CALX provides cloud and software platforms for communications service providers, integrating AI to enhance operations and subscriber engagement [8][9] - Expected revenue and earnings growth rates for CALX are 12.4% and 35.3%, respectively, for the next year [11] Qualys Inc. (QLYS) - QLYS specializes in cloud-based cybersecurity solutions, benefiting from increased demand amid rising cyber threats [12][15] - The company has a projected revenue growth rate of 7.7% and earnings growth of 6.5% for the next year [16] Innodata Inc. (INOD) - INOD plays a crucial role in the AI ecosystem by providing high-quality data for training language models, with expected revenue and earnings growth rates of 24.1% and 35.6%, respectively [18][21] - The company supports five of the seven major hyperscalers and is expanding its capabilities in AI services [19][20] Five9 Inc. (FIVN) - FIVN offers intelligent cloud software for contact centers, with a focus on AI-driven solutions that enhance customer interactions [22][25] - The expected revenue and earnings growth rates for FIVN are 9.5% and 8.3%, respectively, for the next year [26] UiPath Inc. (PATH) - PATH provides a robotic process automation platform that leverages AI to streamline operations, with new generative AI features enhancing its offerings [27][28] - The company anticipates revenue and earnings growth rates of 9.3% and 14.2%, respectively, for the next year [30]

Industry Overview - The cybersecurity industry focuses on integrated protection against evolving security threats while simplifying IT security infrastructure [1] - The rise of artificial intelligence (AI), IoT devices, and increased digitization has heightened vulnerabilities, necessitating advanced security solutions [2] Company Highlights CrowdStrike Holdings Inc. (CRWD) - CrowdStrike has seen a record addition of $221 million in net new annual recurring revenues (ARR), bringing total ARR to $4.66 billion, a 20% increase from last year [5][11] - The growth is significantly driven by the Falcon Flex subscription model, with over 1,000 customers and many signing follow-on "re-Flex" deals, boosting ARR by nearly 50% [6] - The company is expanding its focus on securing AI usage, launching new capabilities to cover AI agents and introducing the Signal AI detection engine [9][10] F5 Inc. (FFIV) - F5 is experiencing strong software growth, particularly in public cloud and security offerings, benefiting from the demand for application security in multi-cloud environments [12] - The company has made six acquisitions in the past five years to enhance its network security capabilities and market share [13] - F5 has an expected revenue and earnings growth rate of 3.9% and 4%, respectively, for the next year [15] Qualys Inc. (QLYS) - Qualys is capitalizing on the demand for cloud-based cybersecurity solutions, maintaining a balanced customer mix across enterprises, SMBs, and government entities [16] - The company has made strategic acquisitions, including Blue Hexagon, to enhance its threat detection and response capabilities [17] - Qualys has expected revenue and earnings growth rates of 8.1% and 4.4%, respectively, for the current year [18] Palantir Technologies Inc. (PLTR) - Palantir reported over $1 billion in revenue for the first time, driven by its AI platform expansion beyond government contracts [19][20] - The company has increased its full-year revenue guidance to between $4.142 billion and $4.150 billion, reflecting strong growth prospects [22] - Palantir has expected revenue and earnings growth rates of 45.6% and 58.5%, respectively, for the current year [22] SailPoint Inc. (SAIL) - SailPoint offers unified identity security solutions through its Identity Security Cloud and IdentityIQ [23] - The company has an expected revenue growth rate of 22.2% and earnings growth rate of over 100% for the current year [24]