Will JFrog (FROG) Gain From AI?

Soumya Eswaran

Mon, June 22, 2026 astatine 8:58 AM CDT 3 min read

NZS Capital, LLC, an concern absorption company, released its "NZS Growth Equity Strategy" first-quarter 2026 capitalist letter. A transcript of the missive tin be downloaded here. The NZS Growth Equity strategy experienced a instrumentality of -8.75% (gross) and -8.91% (net) successful Q1 2026, underperforming the -3.30% of the Morningstar Global Target Market Exposure Index. This diminution was chiefly owed to weakness successful maturation stocks and a important vulnerability to software. While the materials assemblage positively impacted implicit returns, the semiconductor sub-sector besides showed beardown contributions. Major detractors from implicit returns included Information Technology, Financials, and Healthcare. The wide marketplace diminution presented the steadfast with caller concern opportunities amid rising uncertainty and ostentation expectations. In addition, delight cheque the Strategy's apical 5 holdings to cognize its champion picks successful 2026

In its first-quarter 2026 capitalist letter, NZS Capital highlighted stocks similar JFrog Ltd. (NASDAQ:FROG). Incorporated successful 2008, JFrog Ltd. (NASDAQ:FROG) is simply a exertion institution that provides a bundle proviso concatenation level to alteration unafraid bundle transportation and absorption crossed teams. On June 18, 2026, JFrog Ltd. (NASDAQ:FROG) closed astatine $82.72 per share. One-month instrumentality of JFrog Ltd. (NASDAQ:FROG) was 12.78%, and its shares gained 105.13% implicit the past 52 weeks. JFrog Ltd. (NASDAQ:FROG) has a marketplace capitalization of $10.11 billion.

NZS Capital stated the pursuing regarding JFrog Ltd. (NASDAQ:FROG) successful its Q1 2026 capitalist letter:

"The adjacent largest bucket of bundle that we ain has a depletion oregon take-rate based pricing model. For example, JFrog Ltd.'s (NASDAQ:FROG) binary artifactory is priced connected the full magnitude of information retention and information transportation connected its platform, which has seen melodramatic maturation owed to the accelerated gait and measurement of bundle being written by its customers enabled by vibe coding efficiencies. Snowflake and Cloudflare are optionality positions that besides acceptable into this basket."

JFrog Ltd. (NASDAQ:FROG) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 47 hedge money portfolios held JFrog Ltd. (NASDAQ:FROG) astatine the extremity of the archetypal quarter, compared to 50 successful the erstwhile quarter. JFrog Ltd. (NASDAQ:FROG) reported gross of $154 cardinal successful Q1 2026, representing 26% year-over-year growth. While we admit the imaginable of JFrog Ltd. (NASDAQ:FROG) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.