Micron and Sandisk aren't the only tech stocks booming — take a look at these 3 cybersecurity plays

Step aside, Micron (MU) and SanDisk (SNDK). There’s different blistery assemblage successful tech too representation chips.

Somewhat nether the radar, cybersecurity stocks person fallen backmost into favour with investors. And it makes a ton of sense.

Inside the action: CrowdStrike (CRWD) is up 45% successful a month, Palo Alto Networks (PANW) has gained 40%, and SailPoint (SAIL) is up 41% arsenic Wall Street analysts person go much bullish connected the abstraction of late.

While these stocks person been deed implicit the past twelvemonth amid fears that artificial quality models from Anthropic (ANTH.PVT) would render their businesses obsolete, determination appears to beryllium a communicative displacement underway.

Analysts astatine Wolfe Research enactment it champion successful a caller upgrade connected CrowdStrike. They judge Anthropic's Mythos AI exemplary is simply a catalyst for a caller question of AI-driven cybersecurity demand.

It’s a presumption shared elsewhere connected the Street.

“We judge the marketplace is underestimating some the expanding onslaught aboveground created by endeavor AI adoption and the limitations preventing afloat autonomous information operations,” Evercore ISI expert Peter Levine wrote successful a caller note. “AI is already driving meaningful disruption crossed vulnerability discovery, red-team testing, exploit analysis, and malware probe workflows, accelerating some violative and antiaircraft cyber capabilities. We [have] heard vendors with aboriginal entree to frontier models (Palo Alto Networks and Crowdstrike) apt payment from faster remediation cycles, improved developer productivity, and tighter integration betwixt vulnerability find and production-level protection.”

The outlook: Global cybersecurity spending, estimated astatine $220 cardinal by McKinsey, is forecast to turn 13% annually.

“Enterprise AI has entered the agentic phase, successful which autonomous systems independently execute analyzable tasks astatine instrumentality speed,” the researchers astatine McKinsey said. “After a question of pilots successful AI-assisted workflows, organizations are opening to deploy agents crossed their infrastructure, identity, engineering, and information environments. Over the adjacent 12 months, companies expect the stock of afloat implemented agentic AI solutions to much than double. As enterprises clasp AI agents, the aboveground for imaginable cyberattacks expands.”

They added, “The worth for cybersecurity providers lies successful incorporating much AI features and addressing enterprises’ increasing agentic-related information problems crossed individuality systems and detection and information operations. In particular, 3 challenges basal out: individuality and entree absorption (IAM) architectures, detection, and automation of information operations.”