AI-Led Security Boom Makes These 3 Cybersecurity Stocks Worth Buying

An updated edition of the Dec. 23, 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.

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 $218.98 billion in 2025 to nearly $699.39 billion by 2034, a 13.8% 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, Cisco Systems CSCO and A10 Networks ATEN 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

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

Cisco Systems offers cybersecurity products and services that prevent unauthorized access to system resources and protect from worms, spam, viruses and other malware. The company has been integrating AI into its product portfolios across networking, security, collaboration and observability.

Strong demand for Cisco’s products in developing AI infrastructure has been a game-changer for the company. In the second quarter of fiscal 2026, the company received $2.1 billion worth of AI infrastructure orders from web-scale customers.

Data center switching orders continue to register solid year-over-year growth in the second quarter of fiscal 2026, implying strong demand. These orders are coming from some of the biggest players in cloud computing and reflect a growing demand for AI-optimized networks. Cisco Systems is expanding its AI portfolio for data centers with new solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs, and 400G bidirectional (BiDi) optics.

As cyber threats become more sophisticated, Cisco Systems’ AI-powered platform gives it a competitive edge. These innovations are likely to accelerate customer adoption and support strong long-term revenue growth for this Zacks Rank #2 company.

A10 Networks provides software-based application networking solutions. A10 Networks is embedding AI across its security and infrastructure stack, and these initiatives are increasingly shaping its growth outlook. Its Advanced Core Operating System now includes an integrated AI stack that can interface directly with customer AI inference and generative AI systems, helping optimize performance and reduce infrastructure complexity. This allows A10 Networks solutions to offload compute-heavy tasks from GPUs and CPUs, improving throughput and latency for AI workloads, an advantage as enterprises scale AI deployments.

The company is also building AI-native security tools. Its AI firewall protects large language models by inspecting prompt-level traffic to detect threats like data leakage and prompt injection. Its DDoS (Distributed Denial of Service) solutions use machine learning and automated mitigation to detect anomalous behavior and block attacks in real time.

These capabilities are already gaining traction. Microsoft selected A10 to help secure mission-critical generative AI workloads, highlighting demand for its technology in hyperscale environments. By securing AI infrastructure and improving performance for AI workloads, A10 Networks is positioning itself as a critical enabler of enterprise AI adoption. ATEN currently carries a Zacks Rank #2.

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