AI-Driven Cybersecurity Boom Makes These 4 Stocks Worth Buying

An updated edition of the Nov. 4, 2025 article.

Cybersecurity has shifted from being just an IT task to a major business priority. With companies facing constant cyberattacks, from ransomware to phishing schemes to major data breaches, the stakes are high. Cyberattacks don’t just disrupt operations. They can lead to major financial losses and lasting brand damage.

That’s why cybersecurity has become one of the fastest-growing global industries. Fortune Business Insights expects that the global cybersecurity market will jump from $193.7 billion in 2024 to nearly $563 billion by 2032, a 14.4% compound annual growth rate. This surge reflects not only stronger demand but also the growing complexity of digital networks, new compliance requirements and the urgent need to protect critical data. Leaders like Palo Alto Networks PANW, CrowdStrike Holdings CRWD and Fortinet FTNT 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 Palantir Technologies PLTR, Cloudflare NET, SailPoint SAIL and Qualys QLYS 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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4 Cybersecurity Stocks to Buy

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 (Strong Buy) company. You can see the complete list of today’s Zacks #1 Rank stocks here.

Palantir Technologies builds and deploys software platforms for the intelligence community to help in counterterrorism investigations and operations across the United States and internationally.

Palantir Technologies’ AI strategy is comprehensive, combining its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. Its AI Platform (“AIP”) is the backbone of these capabilities, enabling organizations to process large datasets and derive real-time insights. This is especially valuable in sectors requiring extensive data integration, such as defense, healthcare, finance and intelligence, where operational efficiency and decision-making speed are critical.

In the government sector, Palantir Technologies is aligning its AI strategy with U.S. defense priorities. Its work in high-profile initiatives, such as the Department of Defense’s Open DAGIR project, highlights its ability to modernize military operations through AI-driven solutions where data interoperability and real-time decision-making capabilities are imperative. These capabilities solidify Palantir Technologies’ position as a key player in the defense sector. In the commercial space, PLTR's AIP boot camps — providing hands-on experience to more than 1,000 companies — have proven instrumental in customer acquisition.

With the global cybersecurity market rapidly expanding, this Zacks Rank #2 (Buy) company’s deep integration of AI not only enhances its competitive edge but also provides an opportunity for sustainable revenue growth.

Cloudflare is a global cloud services provider that delivers a suite of deeply integrated products, including website and application services solutions, Cloudflare One, developer-based solutions and consumer offerings.

Cloudflare is integrating AI by offering an edge computing platform for AI development and deployment. It is using AI to enhance its core security and performance products. This dual approach helps accelerate developer innovation and provides robust security, directly contributing to the company's growth in the competitive connectivity cloud market.

Cloudflare’s AI-powered networking and cybersecurity solutions are gaining significant traction. The Cloudflare Workers AI platform has seen record adoption, with 3 million developers now actively using the platform. This serverless, AI-driven infrastructure allows companies to build and deploy real-time applications and AI models at the edge, offering faster performance at lower costs compared to traditional cloud providers.

With AI inference workloads shifting to edge computing, Cloudflare’s pay-per-inference model is proving highly efficient, offering 10x cost savings compared to traditional hyperscaler infrastructure. This unique pricing model strengthens this Zacks Rank #2 company’s competitive position in the AI infrastructure space.

SailPoint provides cloud-based identity security and access management software for enterprises. The company’s AI and machine learning (ML)-enabled offerings, including IdentityAI, IdentityNow and IdentityIQ, have helped SAIL move beyond a legacy identity governance solution provider into a unified, intelligent security solution provider.

SailPoint’s AI/ML-enabled offerings power features like predictive access modeling, anomaly detection, automated governance, automated access reviews, access requests and access certification. These features drastically reduce manual effort, audit fatigue and risk for enterprise customers. This automation creates higher efficiency and IT security for clients while securing this Zacks Rank #2 company's leadership in the critical, high-growth identity security segment.

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