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CrowdStrike Stock Hits Record High Following DeepSeek Cyberattack

CrowdStrike Stock Hits Record High Following DeepSeek Cyberattack


Key Takeaways

  • CrowdStrike Holdings shares hit a record intraday high Tuesday after a cyberattack hit Chinese AI startup DeepSeek.
  • The attack comes after tech stocks sank Monday on news that DeepSeek’s AI assistant runs on less-advanced chips and at a lower cost than U.S. rivals like OpenAI.
  • Shares of other cybersecurity companies, including CloudFlare, Zscaler and Palo Alto Networks, also rose Tuesday.

CrowdStrike Holdings (CRWD) was the S&P 500’s second-best-performing stock Tuesday afternoon as it and other cybersecurity companies were boosted by news of a cyberattack on Chinese artificial intelligence startup DeepSeek. 

DeepSeek, which torpedoed technology stocks Monday as investors digested its claim that its AI assistant runs on less-advanced chips and at a lower cost than those of U.S. rivals like OpenAI, temporarily restricted new registrations Tuesday following “large-scale malicious attacks” on its services.

The attacks may have lifted investor enthusiasm for the cybersecurity sector, with CrowdStrike shares gaining almost 10% to become the top-performing Nasdaq Composite stock. CloudFlare (NET) shares jumped 10% in afternoon trading, while Zscaler (ZS) gained almost 7%, CyberArk (CYBR) rose more than 4%, and Palo Alto Networks (PANW) added more than 2%.

CrowdStrike Reports Perfect Score in Ransomware Test

Elsewhere, CrowdStrike’s Falcon cybersecurity platform achieved a perfect score in a real-world ransomware test, the company said Tuesday. The platform “stopped all known and unknown threats with no false positives,” earning a top rating from cybersecurity software testing firm SE Labs. 

Analysts at JMP Securities maintained a “market outperform” rating on CrowdStrike, with a price target of $400 in a note Tuesday. That’s below the company’s recent level just below an record intraday high of $410. Visible Alpha’s mean price target is around $395.

The firm called CrowdStrike and rival Palo Alto Networks “strong contenders to capitalize on the securing of AI infrastructure and data.”

CrowdStrike shares are up some 40% over the past 12 months.


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