Do cybersecurity stocks still have room to run as AI scales up?

00:05 Speaker A

Step aside Micron and SanDisk, but there is another hot sector in tech besides you all in memory chips. Someone under the radar, at least to me. Cyber security stocks have fallen back into favor with investors and it makes a ton of sense. Inside the action here, Crowdstrike is up 41% in a month. Palo Alto Networks has gained 35% and SailPoint, 31%. As you can see right there on my custom Alpha space dashboard, the month gains in these stocks are through the roof. Major, major gains.

00:46 Speaker A

Wall Street analysts have come out more bullish on the space of late while these stocks have been hit the past year on fears models from Anthropic would render their businesses totally obsolete. There appears to be a narrative shift underway. Analyst at Wolf Research put it best, I think in a recent upgrade on Crown Strike. They believe Anthropic uh their Mythos AI model is a catalyst for a new wave of AI driven cybersecurity demand. Amanda, Inez and Brooke are still here. These stocks are through the roof. And I even look at Crowdstrike. I’m on my Alpha space platform right now. Past four quarters, over 20% revenue growth man and I think like we were talking about with a salesforce and a snowflake investors forgot somehow strong some of the growth rates were and could be over the next few quarters for a lot of software companies even like a crowd strike.

01:46 Speaker B

Really impressive, strong organic growth trajectory. It’s a strong secular tailwind for the industry in general when you think about the buildout of a gentic AI, the the budgets for cybersecurity have to scale as the AI story scales as well. So, you know, threat detection, prevention, all those all those components matter as AI agents proliferate. that’s really at the heart of it, I think the thesis. And so none of these companies are cheap per se, but this strong organic growth backdrop uh feels like a no-brainer for investors. You don’t have to get…

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