Wall Street Names 2 Cybersecurity Stocks Poised to Benefit From Post-Quantum Spending

Quantum computing breakthroughs may have taken a backseat as the AI trade continues to fire on all cylinders, but that doesn’t mean the world is oblivious to the threats and opportunities presented by quantum computing. In fact, Q-day — the day a quantum computer can break RSA-2048 encryption — is expected to come as soon as 2028. When that happens, cryptography spending for the new paradigm will go up significantly. BTIG analysts believe the beneficiaries of this development will be the same companies that are already capturing revenue from these opportunities. Fortinet (FTNT) and Cloudflare (NET) are two names that BTIG believes will be among the major beneficiaries of the post-quantum cryptography era.

In other words, the industry could follow the same pattern that other technological developments do. Where many think new entrants will emerge as a result of changing technological paradigms, the incumbents actually take the major share of spending. For Fortinet and Cloudflare, the case could be similar.