TradingKey – Previously, investors were concerned that artificial intelligence would disrupt traditional software business models, weakening software companies’ competitive moats and pricing power. Under this logic, cybersecurity stocks were also sold off alongside the software sector, with CrowdStrike (CRWD) and Palo Alto Networks (PANW) both pulling back significantly from their 2025 highs.

As enterprises accelerate the deployment of AI applications, the market has begun to reassess this judgment. While AI may impact some traditional software, for the cybersecurity industry, it brings not only substitution risks, but also a larger attack surface, more complex digital threats, and higher demand for defense.

Enterprises can postpone some…