Observed Signal · Aug 17, 2026 · Market Commentary · Source: CNBC Technology · Impact: 2/5 · Sentiment: Neutral
Cramer: Two cybersecurity stocks can keep climbing
CNBC’s Jim Cramer said investors should not be deterred by recent rallies in cybersecurity stocks, arguing that AI-driven threats are increasing demand for security products. He highlighted CrowdStrike and Palo Alto Networks — which have risen sharply year-to-date — and noted that earnings growth justifies higher P/Es. Cramer cited bullish research from TD Cowen, which raised price targets on both companies and kept buy ratings, and said AI developers alone won’t eliminate the need for specialist cybersecurity providers. He emphasized cloud migration and CrowdStrike’s cloud-native positioning, noting the company’s business is about 15% penetrated and still has substantial runway for growth. Cramer’s Charitable Trust owns shares in both CrowdStrike and Palo Alto Networks.
Highlights investor sentiment and analyst upgrades around major cybersecurity vendors driven by AI-related threat narratives; relevant to enterprise spending trends but not industry-shifting for AdTech.
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Key Takeaways & Evidence Grounding
- Jim Cramer said investors shouldn’t be scared away from cybersecurity stocks despite recent rallies.
- CrowdStrike and Palo Alto Networks shares climbed 84% and 106%, respectively, so far this year.
- Cramer’s Charitable Trust owns shares of both CrowdStrike and Palo Alto Networks.
- TD Cowen raised its price target on CrowdStrike to $235 from $175 and on Palo Alto to $400 from $360 while maintaining buy ratings.
Connected Companies & Entities
7 Entities mapped““CNBC’s Jim Cramer said Monday investors shouldn’t be scared away from cybersecurity stocks that have already rallied.”...”
““CrowdStrike and Palo Alto shares climbed 84% and 106%, respectively, so far this year.”...”
““CrowdStrike and Palo Alto shares climbed 84% and 106%, respectively, so far this year.”...”
““CNBC’s Jim Cramer said Monday investors shouldn’t be scared away from cybersecurity stocks that have already rallied.”...”
“Image caption: “Michael Nagle | Bloomberg | Getty Images”...”
“Image caption: “Michael Nagle | Bloomberg | Getty Images”...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Wall Street: AI Boosts Cybersecurity Stocks
Wall Street analysts are reframing AI as a tailwind for cybersecurity companies, citing increased demand for security as AI systems expand attack surfaces. Mizuho upgraded CrowdStrike to outperform and raised its price target to $520, citing healthy platform demand and strong AI security offerings. JPMorgan identified CrowdStrike and Palo Alto Networks as likely beneficiaries of threats tied to foundation models and agentic AI. The article notes partnerships such as Anthropic’s Project Glasswing (which named CrowdStrike and Palo Alto as partners) and highlights product and sales catalysts like CrowdStrike’s Falcon Flex and hyperscaler demand. Jim Cramer and his Investing Club hold both names (CrowdStrike rated strongly; Palo Alto rated a 3 to trim into strength). Stock moves and ETF exposures (IGV software ETF) suggest investor sentiment is shifting toward viewing AI as increasing security spend rather than stealing market share.
Cybersecurity Stocks Rally; Three Picks from Josh Brown
Published May 18, 2026, CNBC’s Josh Brown and Sean Russo highlight a strong rally in large cybersecurity stocks and profile Fortinet, Palo Alto Networks and CrowdStrike. Fortinet reported a robust Q1 with double-digit revenue and EPS growth and significant buybacks and debt reduction. Palo Alto is expanding its platform, reporting strong subscription growth, notable recurring revenue in AI and cloud security, and recent acquisitions. CrowdStrike’s recurring revenue and product adoption remain high, with Falcon Flex expanding rapidly and upbeat expectations ahead of its early-June earnings. The piece frames cybersecurity as a durable, non-negotiable IT spend that benefits from AI-driven threat dynamics and cites Anthropic’s Project Glasswing as an industry collaboration addressing AI-discovered security flaws.
CrowdStrike, Palo Alto Stocks Rally After Black Hat AI Threat
Cybersecurity stocks CrowdStrike and Palo Alto Networks reached record highs after discussions at the Black Hat conference in Las Vegas highlighted a rising threat from AI agents. Analysts at BTIG said AI agents have “fundamentally changed the threat landscape,” and the firm raised price targets on Palo Alto to $380 and CrowdStrike to $237 while also boosting Rubrik. The article notes businesses are increasingly adopting AI-driven security tools to counter more sophisticated attacks. Other cybersecurity names including Tenable, Rubrik, Netskope and Zscaler also rallied. Market commentary from Cantor and Jefferies emphasized that AI has shifted from a feature to a core pillar of attacker and defender infrastructure, driving renewed investor interest in security vendors.
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