Cybersecurity stocks surged Monday as AI shares dipped following stark warnings from OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei about AI-driven risks. CrowdStrike jumped over 10% to $232.08, Palo Alto Networks gained 11%, Fortinet climbed more than 5%, and Okta advanced about 8%. Zscaler also rose 12%. The selloff in AI stocks shifted investor focus to security tools, with CrowdStrike up 94.8% over six months. Wall Street projects 23.2% revenue growth for CrowdStrike over the next year, ahead of its Q3 FY27 report, where guidance targets $1.523 billion to $1.529 billion in revenue.
Cybersecurity stocks rallied sharply on Monday as AI shares stumbled, reversing the typical market dynamic. Leading security firms benefited from renewed attention on AI-driven cyberattack risks, following weekend warnings from top AI executives. CrowdStrike Holdings, Inc. (CRWD) rose more than 10%, Palo Alto Networks, Inc. (PANW) gained over 7%, Fortinet, Inc. (FTNT) climbed more than 5%, and Okta, Inc. (OKTA) advanced about 8%.
The broader AI sector sank to open trading after OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei issued stark warnings about AI growth. The debate intensified over the weekend, drawing comments from US President Donald Trump, who denounced calls to slow AI development. Despite the turmoil in AI stocks, cybersecurity emerged as a clear beneficiary of the heightened risk narrative.
By midday Monday, CrowdStrike stock was up 12% to $232.08, while Zscaler (ZS) rose 12% to $183.97. Palo Alto Networks stock jumped 11% to $366.40. Over the past six months, CrowdStrike’s stock has risen 94.8%, reaching $206.38 per share before Monday’s surge, supported by solid quarterly results and now fresh AI safety concerns.
Wall Street analysts project CrowdStrike’s revenue to rise 23.2% over the next 12 months, compared to its 36.5% annualized growth over the past five years. The forecast suggests continued success for its products, though slower than recent history. The next catalyst is the Q3 FY27 report, with the company guiding to revenue of $1.523 billion to $1.529 billion and non-GAAP diluted EPS of $0.31.
That report will reveal whether the AI safety narrative translates into net new annual recurring revenue (ARR). In Q2 FY27, CrowdStrike posted record ARR of $332.8 million, with total revenue growing 25.8% year over year to $1.47 billion. Investors are watching to see if security spending accelerates as AI threats become a central concern for enterprises.
