Along with many other parts of the market, cybersecurity stocks have taken a big tumble over recent months. This includes companies like Palo Alto Networks (NASDAQ: PANW) and CrowdStrike (NASDAQ: CRWD). These cybersecurity stalwarts are both down more than 15% in 2026 and down around 30% from their 52-week highs. Even larger declines are being seen at smaller players like Rubrik (NYSE: RBRK), with shares down around 50% in 2026.
Much of this is due to concerns roiling the broader software industry: artificial intelligence (AI) disruption. Some argue that AI tools can find and repair vulnerabilities better than traditional cybersecurity platforms. However, markets may be underweighting the idea that AI adoption can create new cybersecurity risks.
