Jul. 14 at 7:17 PM
Cybersecurity stocks rallied Tuesday after IBM CEO Arvind Krishna said growing cybersecurity concerns driven by advanced AI models are becoming a top priority for customers. Krishna noted that some businesses delayed major software deals late in the quarter as they reassess cybersecurity spending needs amid the rapid evolution of AI technologies such as Anthropic's Mythos.
Investors interpreted the comments as bullish for the cybersecurity sector, with companies expected to benefit from increased security spending. Okta, Netskope, and CrowdStrike gained around 10%, while SailPoint, Zscaler, SentinelOne, and Palo Alto Networks posted strong advances. Krishna added that customers are shifting some spending toward servers and memory infrastructure but emphasized that IBM does not expect AI to disrupt its software business.
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