{"id":210682,"date":"2026-05-08T03:44:00","date_gmt":"2026-05-08T07:44:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/05\/08\/cybersecurity-stocks-big-comeback-ai-is-rather-a-growth-d\/"},"modified":"2026-05-08T04:00:12","modified_gmt":"2026-05-08T08:00:12","slug":"cybersecurity-stocks-big-comeback-ai-is-rather-a-growth-d","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/05\/08\/cybersecurity-stocks-big-comeback-ai-is-rather-a-growth-d\/","title":{"rendered":"Cybersecurity stocks, big comeback! AI is rather a ‘growth d…"},"content":{"rendered":"

Cybersecurity stocks, big comeback! AI is rather a ‘growth d…<\/a><\/p>\n

https:\/\/www.moomoo.com\/community\/feed\/cybersecurity-stocks-make-a-major-comeback-ai-is-actually-a-116537836175366<\/a><\/p>\n

Publish Date: 2026-05-08 03:44:00<\/a><\/p>\n

Source Domain: www.moomoo.com<\/a><\/p>\n

Author: <\/a><\/p>\n

Using an unordered list, summarize the following article with between 4 and 8 key points. A \u201cnew normal\u201d in the U.S. technology industry, known as “Long semiconductor stocks, short software stocks”\u300dshows signs of change.On May 7, a shift appeared,as semiconductor stocks fell back due to short-term profit-taking,whileSoftware stocks (particularly cybersecurity-related names) soared. $Datadog (DDOG.US)$and$Fortinet (FTNT.US)$ The most symbolic were Datadog and Fortinet.Good earningsFollowing their earnings reports,with respective surges of 31% and 20%..Until now, the market had been concerned that ‘AI would replace software companies.’ However,this earnings season revealed a clear trend: the expansion of AI adoption itself is driving demand for monitoring, defense, and AI security.This reality has become increasingly clear.This article will explore,Based on the content of Datadog and Fortinet\u2019s earnings and their future outlooks,”Potential winners in the AI era”Highlighted stocks in the “monitoring and cybersecurity sectors”and explore investment opportunities.The collapse of the “semiconductor long, software short” strategy\u2014Has the market started to correct the view that ‘AI will disrupt SaaS’?In the US stock market on May 7, signs of change emerged in the pair trade of”long semiconductor stocks, short software stocks,” which had functioned as the go-to strategy for the AI-driven market.appeared.Up to nowWhile capital has been flowing into GPU, HBM, power, and cooling-related sectors, which are seen as direct beneficiaries of expanding AI investments, a pessimistic view has arisen regarding software stocks,as stocks likely to be replaced by AI.had remained firmly in place. As a result, $PHLX Semiconductor Index (.SOX.US)$Is$iShares Expanded Tech-Software Sector ETF (IGV.US)$ (iShares Expanded Tech Software ETF, non-tradable stock) and $Global X Cybersecurity ETF (BUG.US)$ (Cybersecurity ETF) have continued to significantly outperform.However, on May 7th,while the SOX index rebounded on short-term profit-taking,IGV and cybersecurity-related stocks sharply rebounded.Driven by better-than-expected earnings from some cybersecurity-related stocks,funds spilled over into the broader software sector.The backdrop to this wasa wobble in the market consensus that ‘AI will disrupt existing SaaS,’ as suggested by the earnings reports..Furthermore,From the middle of 2025 onward\u3001Software stocks have been one of the sectors facing the harshest headwinds in the market, with growing sentiment (owing to the evolution of generative AI and AI agents) that the value of traditional business software and cloud applications is diminishingAI threat theory, leading to valuation compression in many SaaS stocksValuation compressionprogressed significantly.After undergoing substantial valuation adjustments, software stocksbegan seeing gradual bargain hunting from mid-April 2026 as valuations started stabilizing.Amidst this,Earnings reports of Datadog and Fortinet on May 7are expected to show Contents that support the review-based buying from a performance perspective.Data DogBoth revenue and profit significantly exceeded market expectations,and the full-year outlook was raisedDid.FortinetAll metrics including revenue and EPS (earnings per share) exceeded forecasts, driven by AI demand,with guidance revised upward.Common to both companiesThe point being made was that “The introduction of AI itself is becoming a factor driving demand expansion.”As AI agents, autonomous systems, reasoning processes, and AI cloud environments expand, companies need to strengthen their capabilities in monitoring, visualization, authentication, defense, log analysis, and network control. In other words,AI is not a force taking away software (especially cybersecurity-related) demand but rather a driver creating new demand, and it has started to be re-evaluated as such. Datadog’s CEO also explicitly stated during the earnings briefing thatAI has become an additional structural growth driver. Therefore, today\u2019s market movement suggests not just short-covering in software stocks, but also the possibility that the market has begun to correct the pessimistic scenario that ‘AI will disrupt SaaS.’Datadog soars\u2500\u2500 \u201cObservability\u201d moves to the core of the AI eraThe most symbolic event in this earnings season was the sharp rise in the stock price of Datadog, which had been sluggish due to concerns over AI threats. $Datadog (DDOG.US)$ Datadog is a US software company specializing in ‘observability,’ which monitors and visualizes cloud and application environments. In recent years, it has strengthened AI-related functions such as GPU monitoring and AI agent monitoring.On May 7, Datadogannounced strong earnings results, after which its stock price surged over 31%.Revenue exceeded $1 billion for the first time, accelerating to a 32% year-over-year increase. Moreover,full-year guidance was significantly raised.Notably, there is growing demand related to AI.Datadog provides a monitoring infrastructure that supports AI workloads related to OpenAI and Anthropic, and in the earnings briefing, revealed that it had signed large contracts with ‘two of the world’s largest AI research teams.’ What particularly caught the market’s attention was ‘GPU monitoring’ and ‘LLM observability.’In the AI era, systems are overwhelmingly more complex than traditional software. Monitoring targets include GPU utilization rates, inference speed, data flow, model accuracy, and coordination among AI agents, among others.The scope of monitoring is increasing explosively.is doing.Datadog is gaining prominence as the company providing this ‘Observation Infrastructure for the AI Era.’ The more AI agents there are, the more ‘not stopping’ and ‘immediately detecting abnormalities’ itself becomes a competitive advantage.Monitoring is no longer just an IT cost but is gradually evolving into ‘infrastructure for the AI-driven society.’Outlook for the future marketDatadog, in addition to the conventional cloud migration and digitalization,AI has become a new structural growth driveraccording to their view.Earnings briefingThey explained that, against the backdrop of expanding AI usage and application development, customers have begun utilizing AI-related features such as Bits AI SRE Agent, Bits AI Security Analyst, Datadog MCP Server, and GPU monitoring. Notably,in the future, not only humans but also AI agents will become objects of monitoring, further increasing the importance of observability and securityaccording to this perspective.guidanceDatadograised its full-year 2026 guidance.Revenue guidance was increased from the previous $4.06 billion – $4.10 billion to $4.30 billion – $4.34 billion, and non-GAAP EPS was raised from $2.08 – $2.16 to $2.36 – $2.44.In addition to the expansion of AI-related demand, the increase in AI-native customers and cloud monitoring demand is expected to boost earningsIt was indicated thatThe ‘cyber defense demand in the AI era’ presented by FortinetFortinetalso had a strong impact on the market. The company similarlyannounced strong earnings on May 7, surging 20%.Fortinet is a leading U.S. cybersecurity company that provides enterprise network security products. Centered around its flagship product ‘FortiGate,’ it offers solutions such as SASE, OT security, and AI data center defenseFortinet\u2019s billings, including its backlog, increased by 31% year-over-year, and product revenue surged by 41%. Demand for AI-related data centers and OT (Operational Technology) security drove performance growthWhat particularly drew attention was the management’s recognition that ‘AI is expanding the attack surface’. While AI enhances corporate productivity, it also provides powerful tools for cyber attackers. With automated attacks, phishing, and vulnerability exploration becoming more sophisticated through generative AI, companies are being forced to strengthen their defensive capabilitiesFortinet is gaining market attention as the “defensive infrastructure for the AI era”.As AI data centers and AI agents expand, the importance of network defense, authentication, zero trust, and OT security will continue to grow.Security is no longer just an IT cost but is evolving into “the foundational infrastructure that enables the safe operation of an AI-driven society.”Market OutlookFortinet has indicated its view that AI is accelerating the convergence of networking and security.Earnings briefingThe company explained that increased demand for AI data centers, sovereign AI and sovereign SASE, internal network and server protection, and data center defense will drive long-term growth. The CEO emphasized,AI-related demand is still in its early stagesand as the construction of AI data centers progresses and applications begin to fully utilize AI, it presents a significant long-term growth opportunity.guidanceThe company hasrevised upward its full-year guidance for 2026, driven by the expansion of AI-related demand.Revenue forecasts were raised from the previous $7.5 billion – $7.7 billion to $7.71 billion – $7.87 billion, billings (revenue on a billing basis) increased from $8.4 billion – $8.6 billion to $8.8 billion – $9.1 billion, and non-GAAP EPS was raised from $2.94 – $3.00 to $3.10 – $3.16.Which related stocks could benefit from the reconsideration of ‘AI threat theory’?If this movement to ‘reconsider AI threat theory’ is not temporary, capital flows into ‘AI monitoring and defense’ related stocks could expand going forward.Observability sectorIn the observability (system monitoring and visualization) space,$Datadog (DDOG.US)$In addition,$Dynatrace (DT.US)$ Also considered a leading figure.$Dynatrace (DT.US)$A US software company with strengths in system monitoring and visualization. It is characterized by AI-driven automated analysis and fault detection, holding a significant share in cloud and enterprise system monitoring for large corporations. While Datadog has a strong presence among AI-native companies and developer infrastructure, Dynatrace stands out for its expertise in core system operations and automated analysis for large enterprises.Cybersecurity sectorIn the cybersecurity sector, $Fortinet (FTNT.US)$ the following key stocks are also attracting attention.$CrowdStrike (CRWD.US)$A major US cybersecurity firm with expertise in endpoint protection. It offers real-time threat detection powered by AI and holds a high market share in corporate PC and cloud endpoint protection.$Palo Alto Networks (PANW.US)$A leading network security company. Centered on firewalls, it provides extensive solutions covering cloud, defense, and AI-based security, with an integrated platform strategy as its hallmark.$Zscaler (ZS.US)$A representative company in zero-trust security. It specializes in secure connections via the cloud without using VPNs, benefiting from the expansion of remote work.Note (1): Other strong-earnings software stocksCybersecurity-related ETFs$Global X Cybersecurity ETF (BUG.US)$An ETF with a high investment ratio in pure-play cybersecurity companies. Its portfolio mainly consists of \u201cpure cybersecurity-related stocks\u201d such as CrowdStrike, Fortinet, and Palo Alto Networks.$First Trust Exch Traded Fund 2 Nasdaq Cybersecurity Etf (CIBR.US)$A representative ETF that broadly includes major cybersecurity companies. It also contains infrastructure-related stocks such as Broadcom and Cisco, making it larger and more diversified compared to BUG.Note (1): Other software stocks with strong earningsMay 7 was not only $Datadog (DDOG.US)$and$Fortinet (FTNT.US)$ a day when buying spread to the entire software sector following strong earnings reports. In the market, pessimistic views that ‘AI will disrupt software’ have receded, while the perception that AI demand itself is boosting software demand has rapidly gained traction.Tax software provider $Vertex (VERX.US)$ was valued for its improved profit margins,rising 15.9%. Store payment and POS system provider $NCR Voyix (VYX.US)$also saw a rise based on expectations of improved profitability,with a 15.1% increase..Provider of POS software for restaurants and retail stores $PAR Technology (PAR.US)$ saw both revenue and EPS exceed market expectations, leading to a 8.2% increase. Provider of design software for the manufacturing industry $PTC Inc (PTC.US)$ was positively evaluated for stable growth in earnings forecasts and orders, resulting in a 8.0% increase. Provider of electronic payment software $ACI Worldwide (ACIW.US)$ also gained favor as both revenue and profits exceeded market expectations, contributing to a 7.8% increase.Also,$Zscaler (ZS.US)$ \uff0810.1% increase\uff09\u3001 $CrowdStrike (CRWD.US)$ \uff088.0% increase\uff09\u3001 $Palo Alto Networks (PANW.US)$ \uff087.0% increase) and othersBuying spread to the three major cybersecurity companies.Fortinet’s strong earnings resultsIn addition, the view that ‘AI will push up defense demand’ has become widespread, which is a contributing factor.Expectations for expanded demand in zero-trust, cloud defense, and AI security in the AI era were reflected\u3002Note (2): Potential for renewed buying in major software stocks?The return of funds to software stocks centered around cybersecurity-related stocks could also spread to major software stocks.$Microsoft (MSFT.US)$and$Palantir (PLTR.US)$ \u3001 $Applovin (APP.US)$ \u3001 $ServiceNow (NOW.US)$ \u3001 $Salesforce (CRM.US)$Leading software stocks such as these have continued to adjust year-to-date, while the deviation from the average target stock price remains at a high level.In the market, valuation compression had been progressing due to concerns that ‘AI would disrupt software companies,’ but if the view spreads that AI demand itself is boosting earnings,there is a possibility of a reevaluation buying wave spreading to a wide range of software stocks.\u3002Prepared on May 8, 2026 by Market Analyst JulieSource: Prepared by moomoo Securities based on company materials, Bloomberg, and various sources
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