For cybersecurity stocks Some will survive and even grow, albeit at a slower pace. But we’re interested in those stocks that are more likely to prosper in the age of AI. We found two of them—and one isn’t even an outright cybersecurity stock. It’s a hidden play. But before we dive into these two, let’s understand how the key cybersecurity players operate and how relevant they are in the AI era.

We may have made it sound bad. But as with AI’s impact on software, not all software companies should be treated the same way—some are more likely to survive and some will adapt and stay relevant. To be fair, in this AI era, if a company is merely surviving, it shouldn’t be commanding a growth valuation anymore. Their share prices falling becomes deserving.

In a way, it looks bad on the cyber companies. They appear incompetent against AI capabilities, and customers are wondering what they’ve been paying for all along. This sent cybersecurity stocks tumbling in the past few days.

AI disruption has probably just started. Besides whacking the software industry first, it is now going for cybersecurity stocks.

Anthropic’s new Mythos model was so powerful that it could autonomously find and exploit vulnerabilities which cybersecurity companies couldn’t. It triggered such a security scare that Anthropic only released it to a select group of companies under “Project Glasswing,” so they could beef up their defenses before any ill exploitation or cyberattacks. Even the US Treasury Secretary and the Fed Chair held an emergency meeting