3 cybersecurity stocks that could benefit from the AI boom

Artificial intelligence is advancing extremely fast. But at the same time, the amount of risks associated with it is also growing.

Anthropic CEO Dario Amodei is among those who have long warned that safety must keep pace with AI development.

And that's exactly why it makes sense to me today to look at a sector that can benefit from this in the long term:

Cybersecurity.

I picked 3 companies:

1. CrowdStrike $CRWD

CrowdStrike is one of the fastest-growing pure-play cybersecurity companies.

Its Falcon platform protects devices, identities, cloud, and corporate data.

📈 Revenue grew by 26%

🔁 ARR grew by 25%

🚀 Net new ARR grew by 51%

💰 The company also generates very strong free cash flow

What I like? Strong growth, recurring revenue, and huge room for further development alongside AI.

Risk? Valuation. The market already expects very high future growth. (forward p/e = 150)

2. Palo Alto Networks $PANW

Palo Alto Networks has a much broader security platform.

It protects networks, cloud, data, and security operations for companies.

Its main strategy is so-called platformization – customers use multiple security products from one company.

📈 Revenue +34%

🚀 Next-Generation Security ARR +63%

💰 Very strong cash flow

What I like? The combination of growth, scale, and a broad ecosystem.

If companies start significantly increasing their security budgets due to AI, Palo Alto could be one of the main winners.

Risk? Valuation (forward p/e = 75)

3. Cisco $CSCO

Cisco is a slightly different case.

It's not a pure-play cybersecurity company. Its main business is networking – switches, routers, and data center infrastructure.

But that's also its advantage.

Cisco is already part of the infrastructure of a huge number of companies and can sell them security solutions alongside networking.

After the Splunk acquisition, it also significantly strengthened its position in security and data analytics.

🤖 Benefits from the growth of AI infrastructure

🔐 At the same time, it develops cybersecurity

🌍 Has a very broad customer base

What I like? Cisco can benefit from two trends at once:

AI infrastructure + cybersecurity.

It's a less aggressive option than CrowdStrike, but at the same time significantly more diversified.

Summary:

🔥 CrowdStrike – the biggest pure bet on cybersecurity growth.

🛡️ Palo Alto Networks – in my opinion, the best combination of growth and a strong platform.

🌐 Cisco – a more conservative option that mainly benefits from AI infrastructure.

For me, however, the most important thing is one thing:

Cybersecurity could be one of the biggest "second winners" of the AI boom.

The more AI companies use, the more data, systems, and infrastructure they will need to protect.

And that's why I will watch this sector very closely in the coming years.

💎 And if you're interested in my more detailed analyses, specific buys and sells, and other content I don't share publicly, you can join my membership here on Bulios. You'll find many more benefits and content for those who want to follow my portfolio and investment decisions in more depth.