Cloudflare's AI Stock Soars 85% in 2025, Analysts Expect Further Upside

Cloudflare, an internet infrastructure-solutions provider, has seen its stock skyrocket 85% in 2025 due to strong demand for its AI-focused cloud infrastructure. Analysts expect further upside, with a median price target of $230 indicating a potential 16% increase in the coming year. Cloudflare's growth is expected to improve as companies flock to its server-less GPU model, which enables cost savings and improved performance. Its Workers AI platform is a hit among customers, allowing them to run AI models closer to their locations and reducing latency. Cloudflare's dollar-based net retention rate expanded by 2 percentage points in Q2, and its paying customer base increased by 26% year over year.