"AI isn't gobbling them, it's supporting them because it creates so many new vulnerabilities that hackers can exploit. Every new AI deployment, every agentic workflow, every GPU cluster spun up in the cloud is a new attack surface."
"CrowdStrike is mission-critical infrastructure - securing AI across every layer from GPU to agent to prompt. Ending ARR reached $5.25 billion, up 24% year over year, with record net new ARR of $330.7 million, up 47% year over year."
"Palo Alto has nothing to do with traditional software and its business is actually turbocharged by AI. Next-Generation Security ARR grew 33% year over year to $6.30 billion in Q2 FY26."
The market incorrectly categorizes cybersecurity stocks alongside traditional software, leading to unjustified punishment. Jim Cramer emphasizes that AI creates new vulnerabilities, increasing demand for cybersecurity solutions. CrowdStrike reported a significant increase in annual recurring revenue (ARR), highlighting its role in securing AI infrastructure. Palo Alto Networks also demonstrated growth, with its ARR boosted by AI-driven platformization. Both companies illustrate the critical need for robust cybersecurity as AI technologies proliferate, contradicting the notion that demand would decrease.
Read at 24/7 Wall St.
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