🔥🔐 Dan Ives: The market sees AI as a threat to cybersecurity, but it's becoming the biggest catalyst.

When Dan Ives says "Cybersecurity will become one of the biggest growth sectors in the AI era," his core judgment is actually quite straightforward—

The market is currently using the logic that "AI will replace security tools" to lower valuations,

but reality might be the exact opposite.

First, look at the current market pricing logic.

Many investors are worried:

AI will automatically patch vulnerabilities

Large models will reduce security software complexity

Agents will reduce manual security operations

Thus, security stocks are labeled as "to be replaced by AI."

But Ives's judgment is:

AI doesn't reduce the attack surface; it amplifies it.

When companies deploy AI on a large scale:

Data exposure increases

The number of API interfaces explodes

The models themselves become attack targets

Prompt injection, model manipulation become new threats

Attack tools are upgrading, and defense spending will only follow suit.

Historically, cybersecurity accounts for about 5%–8% of IT budgets.

Ives believes that as AI deeply integrates into enterprise architecture, this proportion could rise to 20%–25%.

This is not moderate growth, but a restructuring of budget allocation.

Look at the core securities involved:

$SentinelOne(S.US)

$CrowdStrike(CRWD.US)

$Palo Alto Networks(PANW.US)

$Zscaler(ZS.US)

Their common characteristics are:

Subscription-based revenue

High retention

High switching costs

Platform-based architecture

If security becomes a "non-optional expense," the cash flow stickiness of these models will be stronger.

Ives also emphasizes another point—the wave of M&A.

Security demands in the AI era are fragmenting:

Cloud security

Identity verification

API security

Endpoint protection

Data loss prevention

To fill capability gaps, large platforms are likely to accelerate integration through M&A.

When sentiment is "extremely negative," M&A often becomes one of the bottom signals for the sector.

But we must remain rational.

Risks also exist:

If the budget cycle slows, growth will decelerate

Fierce competition may compress pricing power

Failed platform integration could weaken synergy

What's truly worth observing is:

Whether security companies are embedding AI into their products, not being marginalized by AI

Whether enterprises are listing AI security deployment as a mandatory compliance requirement

Whether new types of attack incidents will accelerate market education

If AI brings about an "exponential increase in attack intensity,"

then security spending won't be cut, but will be repriced.

The question here is:

Are you more inclined to believe "AI will compress security profit margins,"

or "AI will turn security from a cost center into a strategic expenditure"?