"Any industry that revolves around AI in some way has seen a boost in the stock market, and cybersecurity may be one of the most promising opportunities. As AI efforts expand, companies will have more data that they must safeguard from hackers. Cybersecurity stocks have been long-term winners thanks to their annual recurring revenue models and how valuable they are for companies. The value of cybersecurity firms should continue to rise as AI makes their services more essential."
"Cyber criminals can hack websites, access sensitive documents, and shut down a company's operations if business owners aren't careful. However, the scale of cyberattacks can get much worse with AI, especially as physical AI like humanoid robots and autonomous vehicles start to scale. Each autonomous vehicle and humanoid robot is another entry point for hackers. More entry points boost the importance of cybersecurity firms and let them collect additional revenue."
"Tech companies use AI to create better products and services, and cybersecurity firms use AI to enhance digital safety. However, they aren't the only ones using artificial intelligence. Hackers are also using AI to infiltrate more businesses and people's sensitive information. As hackers get more effective, cybersecurity companies must update their technology to combat the latest threats. Those software upgrades will help cybersecurity firms raise their prices for additional safeguards."
AI adoption increases the volume of sensitive data and the number of connected devices, creating more entry points for cyberattacks and raising demand for cybersecurity. Physical AI like humanoid robots and autonomous vehicles present additional vulnerabilities that require specialized protection. Cyber criminals are leveraging AI to mount more sophisticated intrusions, forcing cybersecurity firms to continually update software and defenses. Those upgrades support higher pricing and recurring revenue models for cybersecurity providers. Rising AI investment by tech companies will require greater cybersecurity allocation, reinforcing the strategic and financial value of cybersecurity firms.
Read at 24/7 Wall St.
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