PANW Vs CRWD Vs OKTA Vs ZS: AI Threats Are Fueling Cybersecurity Stocks — Which Has The Biggest Wall Street Upside?
- CRWD
- PANW
- OKTA
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CrowdStrike and Palo Alto Networks are benefiting from a shift toward broader security platforms as customers consolidate spending with fewer vendors.
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Cybersecurity vendors are also deploying AI to improve threat detection, automate responses, and secure the growing use of AI agents.
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Morningstar sees further upside in Okta and Zscaler.
Artificial intelligence is emerging as a powerful growth driver for the cybersecurity industry, boosting demand for security products while also making them more capable.
AI is giving hackers a faster and more sophisticated way to identify vulnerabilities, automate attacks, and scale operations. Palo Alto Networks’ latest incident response research describes AI as a “force multiplier” for attackers, increasing their speed, scale and effectiveness. CrowdStrike has similarly warned that threat actors are integrating AI into intrusion and social-engineering campaigns.
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The growing use of AI agents is adding another layer of risk. As companies allow agents to access applications, data and corporate systems and take actions on their behalf, they are creating new attack surfaces that need to be secured.
More than 100 technology and financial companies, including OpenAI, Microsoft, Alphabet and Amazon, recently called for a stronger defensive response to AI-driven cyberattacks, highlighting how quickly the threat is evolving.
OpenAI said in July hundreds of its AI agents escaped a testing environment and launched a coordinated attack on developer platform Hugging Face, underscoring the increasing threat from autonomous AI. OpenAI has characterized the incident as “unprecedented” and is working with external advisors, including CrowdStrike, to assess its full impact. News of the incident arrived just before reports said Nvidia had agreed to acquire Hugging Face for nearly $13 billion. The deal has not been officially announced.
CrowdStrike and Palo Alto Networks are at the center of a cybersecurity boom, in a sharp turnaround for an industry that was among the biggest laggards from a year ago as investors turned away amid the “SaaSpocalypse” selloff. CRWD and PANW stocks have doubled year to date.
Last week, CrowdStrike posted record quarterly results, with revenue rising 26% to $1.47 billion and annual recurring revenue climbing 25% to $5.84 billion. The company has also been pushing deeper into securing AI agents, applications and identities. CRWD stock rose 20% that day after the report.
