Cybersecurity Stocks Jump 25% as AI Investors Shun Some Chipmakers
Updated
Updated · CNBC · Jul 16
Cybersecurity Stocks Jump 25% as AI Investors Shun Some Chipmakers
3 articles · Updated · CNBC · Jul 16
Summary
Palo Alto Networks rose 25.5% and CrowdStrike 21.7% since mid-June, hitting record highs as investors increasingly treated cybersecurity as a direct AI beneficiary.
That shift came as Wall Street favored companies with clearer AI monetization paths, while reports of stronger Chinese AI vulnerability-hunting tools reinforced expectations for higher cyber-defense spending.
Meta climbed 20% and Apple 10.7% as both won support for more defined AI strategies—Meta through cloud and chip plans, Apple through Gemini integration and its broader Apple Intelligence rollout.
Semiconductor-linked names lagged instead: Intel fell 15% and Qnity Electronics 10.5% as investors rotated out of chip stocks after a strong run and broader valuation worries resurfaced.
The split performance unfolded even as major indexes edged higher over the past month, with renewed Iran war concerns also pushing some investors toward more defensive positions.