Palo Alto Networks and Fortinet see growth driven by AI cybersecurity demand

Cybersecurity leaders Palo Alto Networks and Fortinet are experiencing significant stock growth driven by the rapid adoption of artificial intelligence. While AI initially raised concerns that it might empower attackers or allow AI labs to replicate existing software, it has instead become a major tailwind for the sector. The increasing complexity of AI-driven attacks is driving enterprise demand for AI-powered defensive tools.

Palo Alto Networks has seen a nearly 112% increase this year, supported by a strategy of providing integrated security platforms rather than fragmented tools. Fortinet has also seen substantial gains, with shares returning 119% year-to-date and reaching a record stock price. Fortinet utilizes AI-powered threat intelligence through FortiGuard Labs to protect critical infrastructure and secure complex IT and operational technology environments.