Key Points
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Artificial intelligence semiconductor stocks like Broadcom and Micron Technology are pulling back from their recent highs, which is dragging down the Nasdaq-100 index.
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Some technology stocks are bucking the recent sell-off as investors hunt for value outside the AI infrastructure space.
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Shares of Atlassian and CrowdStrike were sitting on one-month returns of 10.5% and 18.9%, respectively, as of the market close last Friday, July 17.
- 10 stocks we like better than Atlassian ›
Over the last 30 days, the Nasdaq-100 technology index has declined by 3.6%, led by even steeper losses in artificial intelligence (AI) stocks like Broadcom and Micron Technology. However, some tech stocks with less exposure to the AI semiconductor industry have performed exceptionally well over the same stretch.
As of the market close on Friday, July 17, shares of Atlassian (NASDAQ: TEAM) and CrowdStrike (NASDAQ: CRWD) were sitting on one-month returns of 10.5% and 18.9%, respectively. Should investors buy these outperformers right now?
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Atlassian’s recovery could have legs
Although Atlassian stock is performing well right now, it’s still down 50% from its 52-week high. Its recent upside is part of a broader recovery that started in April, and it could have momentum going forward. In fact, I bought this stock myself a few months ago because I see real value here.
Atlassian developed software products like Jira and Confluence, which are designed to foster collaboration among employees in large organizations. Its stock has come under pressure amid concerns that AI could shrink the global workforce, and thus reduce the revenue of software companies that charge customers on a per-user basis. Plus, some analysts think AI tools like Anthropic’s Claude Code will make it easy for regular businesses to build their own versions of Jira and Confluence.
I think both concerns are overblown. First, Atlassian created its own AI platform called Rovo, which enhances its existing software products and also introduces entirely new tools. Demand for Rovo contributed to the company’s impressive 32% year-over-year revenue growth during its fiscal 2026 third quarter (ended March 31). That growth rate accelerated from 23% in the prior quarter three months earlier, so there is no sign the overall business is losing momentum.
Second, Atlassian offers more than just software. It provides the technical support, infrastructure, and security that businesses need to deploy products like Jira, Confluence, and Rovo, which are only economical at scale. In other words, it would be too expensive for the average business to build its own versions of these products and deploy them in a safe and secure manner.
Despite its recent gains, Atlassian stock is still cheap. It trades at a price-to-sales (P/S) ratio of just 3.9, which is less than half its three-year average of 10.3.
Data by YCharts.
Atlassian has over 350,000 existing enterprise customers, so while most new AI software providers have to build their customer base from scratch, this company has a huge advantage and is uniquely positioned to become one of the industry leaders.
CrowdStrike stock is soaring, but it isn’t cheap
CrowdStrike is one of the world’s largest cybersecurity companies. It has created so much value over the long term that its stock recently traded as high as $767, prompting management to execute a 4-for-1 split to make it more accessible to small investors. Stock splits don’t change the value of the underlying company, but investors can now pick up a single CrowdStrike share for a much lower price of $200. But should they?
CrowdStrike’s Falcon platform is one of the cybersecurity industry’s only true all-in-one enterprise solutions, protecting cloud networks, endpoints, and everything in between. Customers can choose from 33 modules (products) to achieve the optimal level of protection, and with the Flex subscription, they can set a fixed annual budget and switch between different modules as their needs change.
Falcon uses AI to automate threat detection and incident response, but CrowdStrike is also expanding the platform to protect businesses that are deploying AI into their operations. For example, the relatively new AI Detection and Response (AIDR) module can identify unauthorized AI applications running within a corporate network and track inputs and outputs across trusted apps, so it can detect anyone attempting to orchestrate a breach by entering malicious prompts.
CrowdStrike had $5.5 billion in annual recurring revenue (ARR) at the conclusion of its fiscal 2027 first quarter (ended April 30), which was up 24% from the year-ago period. Falcon Flex subscriptions nearly doubled and accounted for $1.9 billion of that total, so this option is really resonating with customers. AI modules are also proving extremely popular, with AIDR alone experiencing a whopping 250% sequential increase in ARR during the quarter.
But rapid growth might not be enough to make CrowdStrike stock a buy. Its P/S ratio is a sky-high 40.5, so it’s significantly more expensive than each of its rivals in the cybersecurity space.
Data by YCharts.
Therefore, while CrowdStrike is bucking the recent sell-off in the Nasdaq-100, its valuation doesn’t leave much room for near-term upside.
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Anthony Di Pizio has positions in Atlassian. The Motley Fool has positions in and recommends Atlassian, Broadcom, CrowdStrike, and Micron Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.