Analyst upgrades Cloudflare to Buy after Q3 fiscal results highlighted the company’s ability to secure large-scale AI inference workloads directly competing with hyperscalers. Notable customer wins include a $15 million contract with a leading media platform and a $12.4 million deal with a European pharmaceutical company. These deals underscore Cloudflare’s shift from a traditional content delivery network to a comprehensive AI inference platform, which offers enterprises significant cost savings by eliminating egress fees. Management noted that AI-driven revenues grew by over 40% year-over-year in Q3, contributing to total revenue of $562 million—a 30.7% increase over the prior year and $17 million above consensus expectations.

In the latest 13F filings, Carnegie Investment Counsel trimmed its stake by 14.2%, selling 25,285 shares and reducing its holding to 153,033 shares valued at $32.8 million at quarter-end. In contrast, Vanguard Group increased its position by 2.1%, adding 658,656 shares to reach 31.5 million shares (approximately $6.17 billion value), while Geode Capital Management boosted its stake by 5.1% to 5.54 million shares. Notably, Norges Bank initiated a new position valued at $541.5 million in Q2, and UBS Asset Management expanded its holding by 33.5% to over 3.1 million shares. Overall, institutional investors now control 82.7% of outstanding shares, reflecting both renewed confidence and profit-taking ahead of year-end.