Wedbush sees cybersecurity spending surging as AI threats grow more complex, and names Palo Alto Networks (NASDAQ:PANW), CrowdStrike (NASDAQ:CRWD), Zscaler (NASDAQ:ZS), CyberArk (NASDAQ:CYBR), Check Point (NASDAQ:CHKP)and Varonis Systems (NASDAQ:VRNS) as top picks.
Wedbush analyst Daniel Ives notes that Agentic AI rollout is expanding attack surfaces faster than ever. Companies embedding these smart systems without built-in safeguards are racing to shore up cloud, network and endpoint defenses.
We are still in the early innings of this trend. Ives and his team are spotting module add-ons across a range of platforms and expect large strategic deals to pick up through 2026 as budgets stretch to match the sophistication of new breaches.
Resilient cybersecurity budgets could make this subsector a standout performer even if broader tech markets wobble. Investors who get positioned now may ride the wave of AI fueled demand in the months ahead.
Watch for an uptick in mergers and acquisitions as both corporate buyers and private equity firms seek AI enabled security targets. Any deal announcements could reset valuation benchmarks across the space.
This article first appeared on GuruFocus.
