Cisco and Palo Alto Networks see increased investment amid AI security demand

Fisher Asset Management has significantly increased its holdings in both Cisco Systems and Palo Alto Networks, according to recent SEC filings. Cisco's position rose from approximately 17.3 million to over 33.4 million shares, while Palo Alto Networks saw a substantial increase from roughly 256,000 to over 5.7 million shares.

These investments highlight two distinct approaches to the growing intersection of networking and AI-driven security. Cisco leverages a broad mix of networking equipment and security software, reporting a 28% increase in networking revenue and a 14% rise in security revenue in its fiscal fourth quarter.

Palo Alto Networks focuses on concentrated security platforms. CEO Nikesh Arora noted that artificial intelligence is driving new demand for security tools and data integration. Arora stated that AI models can identify software vulnerabilities much faster than traditional methods, noting that the company used multiple AI models to identify vulnerabilities within its own environment. He suggested that these AI-driven threats are prompting corporate leaders to consider consolidating their security products.