Consider These 2 Cybersecurity Stocks as AI Threats Surge in 2026

By Joey Frenette Published Feb 9, 9:29AM EST

Quick Read

IGV software ETF has fallen over 30% as investors fear agentic AI disruption.
CrowdStrike and Palo Alto both dropped around 29% despite deploying mission-ready agentic cybersecurity platforms.
Palo Alto trades at 40.1x forward P/E after the decline.

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Consider These 2 Cybersecurity Stocks as AI Threats Surge in 2026 — © 24/7 Wall St.

Agentic AI has caused quite the panic in some of the software names out there. Undoubtedly, some software companies are definitely vulnerable as AI agents look to become more capable. But not every software company is at risk of obsolescence as the era of agents accelerates. Some of the stocks within the iShares Expanded Tech-Software Sector ETF (IGV | IGV Price Prediction), which has tanked more than 30% now, did not deserve to be dragged down with the broader basket.

Indeed, whether we’re talking about the AI enablers or the companies that offer vital data-driven services that AI agents cannot easily replace, I think there are varying levels of disruption across the names. And some of the names might actually be wrongfully sold off, as the rise of agents might actually be a moat-widener than a narrower. Cybersecurity stands out as one of the corners of software that I think shouldn’t have been crushed as badly in the software sell-off.

Arguably, the cybersecurity companies have the data and domain knowledge to bring out the best in agentic cybersecurity solutions. And given the rise of agents stand to increase the danger of cyberthreats, I’d argue that the rise of agents could be more of a boon for cybersecurity than a setback.

The best-in-breed cybersecurity companies are already aboard the AI agent train. At the end of the day, I view the best-in-breed cybersecurity firms not as mere software plays, but as powerful platforms strengthened further by advances in AI. In any case, here are a pair of names that could be great bargains to pick up right here.

Crowdstrike

CrowdStrike (NASDAQ:CRWD) stock is now down around 29% from its all-time high, thanks in part to the shocking stumble in software stocks. It’s never easy to catch a falling knife, but I’d be willing to make an exception for CrowdStrike, especially given the layer of profound unpredictability that AI agents introduce in the world of cybersecurity.

Undoubtedly, perhaps such powerful technology, when put in the wrong hands, could have the potential to be so dangerous that a cutting-edge solution is an absolute must. As CrowdStrike consolidates across the cybersecurity scene while investing considerable sums into AI-first cybersecurity solutions, perhaps CrowdStrike, alongside other cybersecurity firms, will be the first of “software” plays to rebound after a sell-off that I think is starting to become a bit excessive.

CrowdStrike has already shifted gears from Copilots to agents. And its agents are real agents that are “mission-ready.” Combined with its orchestrator in Charlotte Agentic SOAR, it feels like CrowdStrike ought to be grouped with the agentic disruptors, not the software-as-a-service (SaaS) stocks.

Of course, CrowdStrike’s solutions are enterprise-facing, so your average consumer probably won’t have the ability to test out the waters with CrowdStrike’s agents as they would with something like an OpenClaw agent, which has taken the world by storm.

Just because most investors can’t try the tech doesn’t mean it’s not a game-changer hiding behind the curtain.

Palo Alto Networks

Palo Alto Networks (NASDAQ:PANW) is another cybersecurity company that’s misunderstood and could be quick to recover after falling in sympathy with the software industry. Like CrowdStrike, Palo Alto has been ready for the agentic age, well before most consumers had a chance to be blown away by the likes of Claude Code or OpenClaw. Shares are down around 28% from their highs in what appears to be an overdone markdown powered by broader sector fears.

Given the unpredictability of agentic threats, one needs an army of agents to play defense. Cortex AgentiX seems like the perfect counter to the rising AI agent threats. Once headlines of agentic breaches and all the sort come to be, perhaps Palo Alto Networks and other big cybersecurity firms will have a chance to rise again. While valuation might be a concern for some (40.1 times forward price-to-earnings), even after the bear market moment, I do think agentic cybersecurity is a technology that’s worth paying up a premium for.

About the Author Joey Frenette →

Joey is a 24/7 Wall St. contributor and seasoned investment writer whose work can also be found in publications such as The Motley Fool and TipRanks. Holding a B.A.Sc in Computer Engineering from the University of British Columbia (UBC), Joey has leveraged his technical background to provide insightful stock analyses to readers.

Joey's investment philosophy is heavily influenced by Warren Buffett's value investing principles. As a dedicated Buffett disciple, Joey is committed to unearthing value in the tech sector and beyond.