- NVDA
- CRWD
- OKTA
Quick Read
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Nvidia’s $96.2 billion quarter, up 106% year over year, confirms AI spending is accelerating and expanding the attack surface cybersecurity companies must defend.
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CrowdStrike posted its best-ever quarter with 26% revenue growth and net new ARR surging 51%, while Okta jumped 22% on an 11% revenue gain.
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Companies cannot defer compromised identities or stolen data the way they can pause experimental AI projects, making security spending uniquely recession-resistant.
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The AI boom has moved beyond a handful of chipmakers and cloud giants. As companies pour more money into artificial intelligence, they are also creating more systems, identities, data and autonomous agents that need protection. That makes cybersecurity an increasingly important part of the AI infrastructure stack — not an optional expense to be trimmed when budgets tighten. This week’s earnings provide fresh evidence.
Nvidia (NASDAQ:NVDA) just delivered another record quarter, while CrowdStrike (NASDAQ:CRWD) and Okta (NASDAQ:OKTA) showed that customers are spending to defend the rapidly expanding attack surface. The result is a powerful investing thesis: If AI keeps accelerating, cybersecurity may be one of its most durable second-order beneficiaries.
Nvidia Just Reaffirmed the AI Spending Cycle
Nvidia reported fiscal Q2 2027 revenue of $96.2 billion yesterday, up 106% year over year, while data-center revenue jumped 117% to $89 billion. More important for investors looking beyond the quarter, management expects fiscal Q3 revenue of $108 billion, plus or minus 2%, despite assuming no data-center computing revenue from China. CEO Jensen Huang said demand is accelerating as AI labs, startups, and physical-AI applications expand.
That is important for cybersecurity because more AI deployment means more potential entry points.
NTT DATA CEO Abhijit Dubey recently described the problem bluntly: Frontier AI has changed cybersecurity because attacks are operating at “machine speed,” while traditional defenses operate at human speed. Palo Alto Networks (NASDAQ:PANW) and CrowdStrike are among the companies positioning their platforms to automate defense against that faster threat environment.
Machine-speed attacks are here. As the AI spending cycle accelerates, cybersecurity is evolving from an optional expense into the boom’s essential armor. © 24/7 Wall St.
