Why Elastic N.V. (ESTC) Remains a High-Growth Stock in the AI-Driven Cybersecurity Market

Elastic N.V. (NYSE:ESTC) is one of the best high-growth cybersecurity stocks to buy. On February 2, Elastic N.V. (NYSE:ESTC) announced plans to make it easier for organizations to access cloud-hosted GPU inference capabilities. Elastic Inference Service is the company’s new service that enables self-managed customers to use GPU-based embedding and reranking models without GPU hardware.

Thanks to Elastic Inference Service, organizations will gain on-demand access to cloud-hosted inference capabilities while maintaining core infrastructure and data on premises.

“With Elastic Inference Service via Cloud Connect, we’re making it easier for self-managed customers to adopt semantic search without taking on the complexity of GPU infrastructure,” said Steve Kearns, general manager, Search at Elastic. “With a single setup, self-managed customers can access a range of cloud services from automated diagnostics to fast AI inference, all while keeping their data on-premises.”

Earlier on January 30, Rosenblatt Securities reiterated a Buy rating on Elastic NV but cut the price target to $110 from $130. The price target cut is in response to recent compression in comparable multiples and macroeconomic concerns affecting enterprise software companies. Despite the cut, the research firm expects the company to deliver better-than-expected third-quarter fiscal 2026 results.

On January 22, Elastic launched Agent Builder, a platform that lets developers create AI agents to access and analyze enterprise data, with Elastic Workflows introduced in technical preview. Built on Elasticsearch, Agent Builder supports data preparation, retrieval, ranking, and monitoring, integrates with Microsoft Foundry and Agent Framework, and works across model-as-a-service providers.

Elastic Workflows extends functionality by enabling agents to execute actions across multiple systems, combining AI reasoning with rule-based automation. Both tools aim to simplify enterprise data use, enhance security, and scale context-driven AI agents for real-world applications.

Elastic N.V. (NYSE:ESTC) is a search artificial intelligence (AI) company that provides a platform for ingesting, searching, analyzing, and visualizing data in real time. Known as “The Search AI Company,” Elastic helps organizations—including over 50% of the Fortune 500—securely harness their data for search, observability, and security use cases.

While we acknowledge the potential of ESTC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.