Cloudflare’s AI-Driven Surge: From CDN to Critical Infrastructure

A sudden shift in narrative is fueling a significant revaluation of Cloudflare's stock. The company, traditionally viewed as a content delivery network (CDN) provider, is now being cast in a new light as essential infrastructure for the emerging "agentic AI" landscape. This pivot is largely driven by the viral adoption of AI agents like Clawdbot (now Moltbot), which utilize Cloudflare's technology, providing a tangible use case that could have lasting implications for its business trajectory.

The immediate trigger for investor enthusiasm is the widespread use of Cloudflare Tunnels. This service securely connects AI agents, often built on Anthropic's Claude models, to the internet. Market participants are interpreting this surge not as a fleeting trend but as a validation of Cloudflare's broader "Connectivity Cloud" vision. Concrete usage, they argue, strengthens the company's infrastructure narrative. CEO Matthew Prince has emphasized that future autonomous agents will depend on such networks. This shift from abstract AI potential to demonstrable infrastructure utility explains the stock's rapid reassessment.

In terms of performance, the equity recently traded at €172.12. It has advanced approximately 18.4% over the past seven days and shows a gain of about 28% on a twelve-month basis. These figures highlight the short-term market reassessment, though longer-term valuation questions remain.

Should investors sell immediately? Or is it worth buying Cloudflare?

Market Analysts and Strategic Moves

The rally has prompted swift commentary from research firms. RBC Capital Markets labeled Cloudflare a "Tier-1 AI winner," reaffirming an Outperform rating and a $265 price target. Similarly, TD Cowen maintains its $265 target. Analysts at Wolfe Research directly linked the share price movement to increasing traffic from AI agents. The consensus view among 35 covering analysts sits near $232, suggesting continued upside potential.

Alongside this organic attention, Cloudflare is actively bolstering its ecosystem through acquisitions. The integration of Human Native, an AI data marketplace, and The Astro Technology Company, strengthens two key pillars: access to training data content and developer frameworks. These moves make the company's AI strategy more concrete, clarifying its technical leverage and potential market access.

Upcoming Financial Test

A clear milestone approaches: Cloudflare is scheduled to release its Q4 2025 results after the market closes on February 10, 2026. Current market expectations point to revenue of around $590–591 million and earnings per share (EPS) of approximately $0.27. The critical focus will be management's ability to articulate how the increased agent traffic can translate into billable volumes and accelerate revenue growth for fiscal 2026. Specific commentary on monetization pathways would likely support the current re-rating. Conversely, if the guidance remains vague, the recent gains could prove susceptible to profit-taking from short-term positions.