As the fervor for artificial intelligence (AI) shows no signs of abating, the spotlight is increasingly falling on security issues. The rapid expansion of generative AI applications has led to a surge in cyber attacks, as these technologies are used to create malicious programs. The sheer volume of data being transferred for AI operations is also on the rise.
Morgan Stanley, one of the largest investment banks in the U.S., has identified four cybersecurity stocks that stand to benefit from the increased use of AI. These include CrowdStrike, Palo Alto Networks, Fortinet, and Microsoft.
CrowdStrike’s flagship service is an ‘endpoint protection solution’ that uses AI and machine learning to detect and respond to cyber attacks in real time. This cloud-based security service offers more effective and efficient endpoint protection than traditional antivirus software.
Palo Alto Networks’ main product is a next-generation firewall based on machine learning and cloud technology. It continuously analyzes app traffic and automatically detects bots. Palo Alto Networks provides comprehensive cybersecurity services, including cloud security, endpoint protection, DNS security, and incident response.
Fortinet offers a security solution that encompasses various technologies, including firewalls, antivirus, VPN, and URL filtering. Its flagship product is the FortiGate firewall appliance, which integrates multiple security functions into a single device.
Microsoft’s business scope is vast, with some of its operations related to cybersecurity. Its key security product is the Microsoft Defender Advanced Threat Protection, an endpoint detection tool that uses AI and behavioral analysis to identify and resolve threats.
Investing in these specialized areas can be effectively done through ETFs. One of the well-known ETFs in the cybersecurity field is the First Trust NASDAQ Cybersecurity ETF, with the ticker CIBR.