Meet the artificial intelligence (AI) stock that's crushing Nvidia on the market in 2025

For years, Nvidia has been the undisputed champion of the AI revolution, its GPUs powering rapid advancements. But what if the next significant AI winner isn't the obvious hardware giant, but a company securing the very infrastructure these innovations rely on? Savvy investors know true market leadership often emerges from less-trafficked corners. This year, one cybersecurity specialist has not only entered the AI arena but is decisively outperforming Nvidia, presenting a compelling opportunity for those looking beyond the headlines.

Beyond the GPU: Zscaler's AI-Powered Cybersecurity Advantage

While Nvidia's stock appreciated 32% in 2025, Zscaler (ZS) delivered an impressive 59% jump. This isn't just a fleeting trend; it's a testament to Zscaler's strategic positioning at the intersection of critical cybersecurity needs and AI's explosive growth.

Securing the Future: Zero-Trust and AI

Zscaler, a leader in cloud-based cybersecurity, is renowned for its zero-trust security solutions. This approach verifies every user and device before granting network access, a critical defense in a complex digital landscape. The zero-trust market itself is projected to surge at nearly 17% annually, reaching over $92 billion in revenue by 2030.

Zscaler isn't merely participating in this growth; it's accelerating it by embedding AI into its core offerings. The company provides advanced tools to protect AI applications, ensure secure access, and safeguard large language models from emerging threats. This forward-thinking strategy positions Zscaler to capture significant market share as AI adoption broadens.

Agentic AI: A Catalyst for Exponential Growth

A key differentiator for Zscaler is its agentic AI cybersecurity solutions. These innovations streamline identifying IT outages, implementing corrective measures, and enhancing troubleshooting efficiency. It's about transforming how businesses defend against cyber threats in real-time.

The impact of this focus is clear: annual recurring revenue (ARR) from agentic security operations soared by an impressive 85% year over year, while its agentic AI operations grew by 58% last year. Considering the agentic AI in cybersecurity market is forecast to achieve a compound annual growth rate (CAGR) of 34% through 2033, generating an astounding $322 billion in annual revenue, Zscaler is aligned with a truly transformative opportunity.

A Robust Revenue Pipeline and Compelling Valuation

Solidifying its future prospects, Zscaler's remaining performance obligations (RPO) jumped 31% last quarter to $5.8 billion. RPO represents the value of a company's contracted backlog. This growth, significantly outpacing its quarterly revenue increase of 21%, indicates a rapidly expanding base of future business. It suggests Zscaler is winning new contracts faster than it can fulfill them, pointing to sustained, accelerated revenue growth ahead.

While Wall Street analysts predict strong double-digit growth, Zscaler’s improving RPO and leadership in nascent, high-growth AI cybersecurity niches suggest it could easily surpass these expectations. This potential for outperformance makes its current valuation particularly appealing. Trading at 16 times sales, Zscaler offers a more reasonable entry point compared to Nvidia’s price-to-sales ratio of 25. With Nvidia's growth potentially moderating due to its large revenue base, Zscaler, from its comparatively smaller base, is well-positioned for higher growth rates in the coming years.

Seize the AI Security Opportunity

For investors seeking to capitalize on the AI revolution without betting solely on hardware, Zscaler presents a compelling alternative. Its robust performance, strategic focus on AI-centric cybersecurity, and rapidly expanding revenue pipeline offer a distinct path to long-term gains. Don't overlook companies building the critical infrastructure of the AI era; they might just be delivering the most impressive returns.