Cybersecurity Stocks CRWD, ZS, NET Plunge on Anthropic AI Fears — Dan Ives Calls It a ‘Tailwind’

Shares of cybersecurity firms CrowdStrike CRWD -9.85% ▼ , Zscaler ZS -10.31% ▼ , and Cloudflare NET -9.57% ▼ fell almost 10% on Monday as investors weighed the potential competitive impact of Anthropic’s new AI-driven security tool. In addition, the iShares Cybersecurity and Tech ETF IHAK -4.65% ▼ fell about 5%, while the Global X Cybersecurity ETF BUG -4.97% ▼ dropped to its lowest level since November 2023. However, not everyone on Wall Street is worried. Wedbush analyst Daniel Ives described the AI as a long-term “tailwind” for the cybersecurity sector, arguing that AI could ultimately accelerate demand for advanced cybersecurity solutions rather than replace them.

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For context, Ives is a well-known Wall Street analyst, specializing in technology and AI stocks. On TipRanks, he holds a solid five-star rating and is ranked #636 out of more than 12,000 analysts tracked on the website.

What Anthropic’s AI Tool Means for Cybersecurity Stocks

Anthropic’s new tool, Claude Code Security, is currently available in a limited research preview. The tool uses AI to scan large amounts of code, identify potential security weaknesses, and suggest fixes that engineers can review and apply. This helps companies detect and resolve vulnerabilities faster than traditional manual or rule-based security tools.

The launch has sparked concerns that AI-powered tools could automate parts of the security work currently handled by companies such as CrowdStrike, Zscaler, and Cloudflare.

In response, CrowdStrike CEO George Kurtz pushed back, saying the new AI capability would not replace the company’s widely used Falcon platform or weaken its competitive position.

Ives Sees AI Boosting Cybersecurity Growth

Ives believes AI will ultimately benefit cybersecurity companies. He argues that many of the stocks under pressure today could become key players in the AI era.

He added that Anthropic’s entry into cybersecurity with its new tool actually reinforces the idea that cybersecurity will be a major growth area in the AI revolution. As AI adoption increases, so do risks to data, systems, and networks — making strong cybersecurity protections even more essential.

Overall, he believes, AI is likely to be a powerful long-term growth driver for the sector, as companies invest more to protect their data and digital infrastructure. Firms such as CrowdStrike and Zscaler are well positioned to benefit by integrating AI into their platforms and expanding their security capabilities.

Which Is the Best Cybersecurity Stock, According to Analysts?

Using TipRanks’ stock comparison tool, investors can compare top cybersecurity companies and conduct further research to find the most promising options based on analyst ratings and insights. Below is a screenshot for reference.

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