Cloudflare has implemented a unique AI inference strategy that focuses on maximizing system efficiency rather than the conventional approach of hyperscalers like Amazon and Microsoft. Utilizing its custom large language model inference engine, Infire, Cloudflare has managed to enhance GPU utilization and minimize overhead costs. This method allows the company to achieve higher throughput with fewer resources, significantly reducing latency compared to traditional data center models.
As of now, Cloudflare’s shares have increased by 9.9% over the past six months, outperforming the Zacks Internet – Software industry’s overall decline of 3.1%. The company trades at a forward price-to-sales ratio of 26.19X, considerably higher than the industry average of 4.86X. Additionally, the Zacks Consensus Estimate predicts a year-over-year earnings growth of 21.3% for 2025.
