Cybersecurity stocks are currently holding up well in the AI trade.

Cybersecurity stocks are currently holding up well in the AI trade. This sector stands out as other AI names wobble.

$CRWD is up 72% year to date. The company has beaten EPS estimates for eight straight quarters. A 4-for-1 stock split took effect on July 2, 2026. Wall Street is raising targets in response. UBS lifted its price target to $235 from $198. Benchmark moved its target to $230 from $195. CNBC notes that cybersecurity is keeping momentum while the broader AI trade shows cracks.

Investors are rotating out of high-multiple AI infrastructure stocks. They are moving into cybersecurity instead of leaving AI entirely. The sector now acts as a defensive AI trade. It captures capital from investors who want AI exposure with different risk traits. $PANW trades at $359.35 today amid this shift.

How long will this trend continue? Depends on execution. Cybersecurity is seen as a safe harbor within AI right now. But that status relies on strong fundamentals. CRWD must extend its beat streak on the next earnings report. If it fails, the defensive narrative loses support.

Also, if you look at the chart, it's way above the 200 DMA, which is a warning sign. In addition, it has a very high negative P/E ratio. Neither signals an immediate turnaround, just something to watch.

Capital is flowing here for consistency. Any break in that pattern could trigger a reversal and in my view, there will be a fairly large correction in the next year for these two names specifically. Do not FOMO into these stocks right now, they are very close to their peaks.

Not financial advice. DYOR!

Not financial advice. For informational and educational purposes only.