AI-Fueled Cybersecurity Market Makes These 3 Stocks Worth Buying

An updated edition of the July 25, 2025 article.

Cybersecurity has become one of the top priorities for organizations. Businesses today face nonstop attacks, whether through ransomware, phishing or large-scale data breaches. These cyberattacks do not just disrupt operations. They threaten financial stability and long-term brand reputation.

Given the rising risks, it’s clear why cybersecurity has become one of the fastest-growing industries. Fortune Business Insights projects the global cybersecurity market to expand from $193.73 billion in 2024 to $562.77 billion by 2032, indicating a robust CAGR of 14.4%. Tighter regulations, increasingly complex IT systems, and the rising need to safeguard sensitive data are fueling the demand for cybersecurity solutions. Leaders like Palo Alto Networks PANW, Fortinet FTNT and Check Point Software CHKP are already monetizing this demand with platforms built for modern threats.

Today’s attacks are smarter and faster than ever, and traditional security tools are falling behind. This is where artificial intelligence (AI) comes in. AI can analyze vast volumes of data and detect potential threats before they escalate. It shifts cybersecurity from reactive to proactive. The pace at which threats emerge means companies need to automate their detection and response processes, and AI is the most promising way to do that.

Companies like CrowdStrike Holdings CRWD, Qualys QLYS and Radware RDWR are leaning heavily into AI. They're upgrading their platforms to detect and respond to threats more quickly and intelligently. This not only makes their products more valuable to customers but also gives them a stronger position in a fast-growing industry.

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3 Cybersecurity Stocks to Buy

CrowdStrike is a leader in next-generation endpoint protection, threat intelligence and cyberattack response services. The company is increasingly using AI to reinforce its cybersecurity leadership and accelerate revenue growth. Its Falcon platform applies AI-driven analytics to detect and prevent threats in real time, enabling early threat detection and automated responses that outpace traditional tools.

Beyond endpoint protection, CrowdStrike is embedding AI into cloud, identity and workload security, broadening its portfolio and creating stronger revenue streams through cross-sell and upsell opportunities. The company’s AI advancements also boost scalability and operational efficiency, helping it win large enterprise deals and maintain high customer retention.

With the global cybersecurity market rapidly expanding, this Zacks Rank #1 (Strong Buy) company’s deep integration of AI not only enhances its competitive edge but also provides an opportunity for sustainable revenue growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

Qualys focuses on vulnerability management, compliance and cloud security, areas that have become essential as enterprises move workloads across hybrid and multi-cloud environments. The company is strategically enhancing its AI capabilities to strengthen its position in the growing vulnerability management and cloud security market.

Qualys has integrated advanced AI models into its TotalCloud and VMDR (Vulnerability Management, Detection and Response) platforms, allowing for faster detection, prioritization and remediation of security threats. By leveraging AI to analyze vast volumes of threat data, Qualys enables enterprises to automate threat triage and focus on the most critical vulnerabilities with precision.

As cyber threats become more sophisticated, Qualys’ AI-powered, cloud-native platform gives it a competitive edge. These innovations are likely to accelerate customer adoption, drive upselling and support strong long-term revenue growth for this Zacks Rank #1 company.

Radware provides cybersecurity and application delivery solutions that protect organizations' digital infrastructure and applications in physical, cloud and software-defined data centers. The company is using AI to enhance its product capabilities.

Radware’s AI-driven tools, such as advanced DDoS (Distributed Denial-of-Service) protection and bot management, detect anomalies in real-time and automate responses, giving customers faster, more accurate defenses against increasingly complex threats. This proactive approach reduces manual effort while improving scalability.

In addition to security, Radware applies AI to optimize load balancing and traffic management, helping enterprises adapt to cloud and hybrid workloads. By embedding AI across its offerings, this Zacks Rank #2 (Buy) company strengthens customer loyalty and creates opportunities for recurring revenues through subscription services and upselling.

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This article originally published on Zacks Investment Research (zacks.com).

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