The survival rules of the internet era—how AI cybersecurity concept stocks can become the next investment trend

Why Is Now the Time to Focus on Cybersecurity?

Imagine all your communications, social interactions, shopping, work, and confidential data flowing across the internet. With the explosive development of AI technology, not only will human-to-human communication rely on the internet, but machine-to-machine interactions will also occur online. TSMC Chairman Liu Deyin once said that the pandemic accelerated digitalization by ten years, and AI may continue to speed up this process.

In this context, information security is no longer an option but a necessity. Hackers’ attack methods are constantly evolving, and companies are willing to invest substantial resources to protect increasingly valuable cloud data. This is why AI cybersecurity concept stocks have become highly attractive to many institutional investors.

The Golden Era of the AI Cybersecurity Industry Has Arrived

According to market data, the global cybersecurity market reached a size of $240.27 billion last year and is projected to grow to $345.4 billion by 2026, with an average compound annual growth rate (CAGR) of 9.5%. This growth rate is almost unique amid the current global economic downturn.

The reason the cybersecurity industry can grow against the trend is primarily due to the increasing penetration of digitalization. Manufacturing, finance, healthcare, retail, transportation, and energy sectors are all accelerating digital transformation. Even roles once considered hardest to replace, such as doctors and artists, are now facing AI threats. Every industry upgrade means more data moving to the cloud, and more cloud data requires stronger cybersecurity protection.

Companies are well aware of these risks and are willing to invest in AI cybersecurity solutions to safeguard their data. This creates an ever-expanding window of opportunity for the entire industry.

Why Choose Industry Leaders When Investing in Cybersecurity?

The key is trust. When it comes to national security and corporate lifelines, both governments and companies tend to prefer industry leaders. Just like insurance, money needs to be stored for over a decade, so no one dares to put funds in small companies fearing bankruptcy midway. The logic in cybersecurity is similar: if a large company leaks information, the reputational damage is extremely costly, so they must invest more resources to maintain technological leadership. Technology itself is a money-burning game; only larger companies can sustain continuous spending to stay competitive.

Analysis of Three Leading AI Cybersecurity Stocks

Cisco Systems (CSCO): The Integrator of Hardware and Software Transformation

Global networking giant Cisco Systems was founded in 1984 and is headquartered in California, USA. In September 2023, Cisco invested $28 billion to acquire cybersecurity giant Splunk. This major acquisition signals an important shift: companies are moving from selling hardware to high-margin service-based models, which is also part of Cisco’s strategic layout in the AI era.

Originally focused on networking and telecommunications hardware, Splunk specializes in data management and security capabilities. Combining the two allows for providing customers with safer, faster cloud experiences—addressing the biggest pain points during the proliferation of generative AI. AI training data is the most valuable asset; protecting the database itself and ensuring secure data transmission are both critical, and this is Cisco’s strength. In the future, Cisco could also develop dedicated transmission equipment for AI applications to enhance user experience.

In the long run, investing in CSCO may not lead to explosive gains, but its solid fundamentals make it a favorite among institutional investors.

Fortinet (FTNT): A Blue Ocean Opportunity in the EDR Market

Founded in 2000, Fortinet primarily serves enterprises, servers, and government agencies. As a cybersecurity provider trusted even by governments, private enterprises are naturally more confident in its services. Fortinet offers comprehensive solutions including firewalls, intrusion prevention, anti-malware, virtual private networks, and application control.

Here’s an intriguing data point: antivirus software penetration has reached 95%, but only 20% of users employ EDR (Endpoint Detection and Response). In other words, there is still vast growth potential. EDR can automatically collect data via AI, quickly detect suspicious activities, and alert teams for emergency response. As companies place greater emphasis on cybersecurity, EDR adoption is bound to increase.

Recently, Fortinet’s stock price was hit hard due to slowing growth, but this presents a good opportunity for investors optimistic about AI cybersecurity industry prospects.

CrowdStrike (CRWD): A Pioneer in AI Application

CrowdStrike has been using AI since its inception, with CEO George Kurtz personally confirming that the company has over 10 years of AI experience. While many companies now claim “we have AI,” CRWD has been training its AI capabilities for years, giving it a first-mover advantage.

Tech giants aiming to grow big and strong tend to prioritize experienced partners. For example, if Tesla wants to expand its autonomous vehicle database, CRWD would be the first choice. This confidence has led CRWD to project a 30% growth in its annual recurring revenue (ARR) this year.

Currently, over 50% of Fortune 500 companies are CRWD clients, and in the highly regulated banking sector, 75% of the top 20 banks are CRWD users. As AI applications become more widespread, this company’s prospects will only brighten.

Summary: Investment Logic of Riding the Trend

Profitable investing hinges on aligning with major trends. The current major trend is: amid the global recession, only a few industries can achieve stable and rapid growth, attracting continuous capital inflows.

AI cybersecurity concept stocks are positioned at a historic opportunity. In the future, smart cities will connect almost all appliances, intelligent vehicles will communicate via the internet, and data traffic will explode—making cybersecurity more important than ever.

Investing in leading companies in this field not only allows asset growth but also provides insights into technological trends through tracking related developments, broadening your perspective. In the dual gains of wealth and knowledge, seize the opportunities of this era.