Palo Alto Networks shares rise on AI-driven cybersecurity rally
Updated
Updated · MarketWatch · May 7
Palo Alto Networks shares rise on AI-driven cybersecurity rally
11 articles · Updated · MarketWatch · May 7
The stock gained 6% Thursday afternoon, while CrowdStrike rose about 7%, Zscaler 9%, Datadog 29% and Fortinet 20%.
The rally followed upbeat earnings from Datadog and Fortinet and a broader software rebound, with the IGV software ETF outperforming the SOXX semiconductor ETF by about seven percentage points.
Analysts said investors are shifting from fears that AI would disrupt cybersecurity vendors to expectations that AI will boost demand, with Palo Alto's role in Anthropic's Project Glasswing seen as an added catalyst.
As AI becomes the ultimate hacker, can defensive technology possibly win the escalating cyber arms race it has created?
With AI models finding critical flaws in minutes, are global cybersecurity regulations like the EU AI Act already hopelessly outdated?