Cybersecurity stocks represent the firms that protect digital systems and assets from malicious actors. In a rapidly digitizing world, the demand for such services is obvious. Growth forecasts reiterate the notion of rising demand. The cybersecurity sector is expected to grow at an annual rate approaching 10% between now and 2028.

The rapid emergence of artificial intelligence has only heightened the demand for cybersecurity. More and more data is being produced and transferred than ever before. Yet, at the same time, AI promises to bolster cybersecurity in a strengthening market. With 2024 shaping to be bullish, it makes sense to consider cybersecurity stocks as an investment.

Tenable Holdings (TENB)

Tenable Holdings (NASDAQ:TENB) provides cybersecurity software to over 40,000 enterprises globally. Nessus is the most notable product from the company that serves more than 60% of the Fortune 500. 

Tenable Holdings won’t wow investors with exceptionally high growth projections. It does benefit from strong analyst ratings on Wall Street, but consensus target prices aren’t dramatically higher than current prices. 

Yet, Tenable Holdings is a solid firm that initiated a 100 million share buyback back in November. The company has also doubled the number of high-value accounts under its Management in the past few years. In late 2020, the company had slightly more than 750 $100,000 accounts. Per the last count, it has more than 1,550 such accounts.

Further, Tenable Holdings continues to slash operational losses as it becomes a more efficient firm overall. TENB shares represent a solid cyber security firm that doesn’t get much attention but remains worth considering.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is a cloud computing stock at its heart, but the company also is engaged in cybersecurity.

There are multiple reasons to invest in Microsoft: a huge presence in artificial intelligence and the booming growth of the cloud sector are the chief reasons overall. No one will suggest that Microsoft is a cybersecurity leader. However, its increasing presence in the field is worth considering.

Microsoft plans to implement AI tools into its cybersecurity platform, Microsoft Security Copilot. Microsoft is at the forefront of generative AI. Many worry that generative AI will increase The incidence of cybersecurity breaches, including ransomware attacks. 

So, Microsoft will provide the antidote to the problem for which it is partially responsible. 

Overall, it is another consideration for those on the fence regarding Microsoft as it marches to historically High prices. Those prices are justified in the minds of many who cite 30% growth out of its cloud segment. Microsoft will continue to invest heavily in AI to bolster the strength of the Azure cloud. That alone is worth investing in; the cyber security slant makes it much more so. 

Palo Alto Networks (PANW)

Palo Alto Networks (NASDAQ:PANW) is one of the bigger, more established cybersecurity stocks available to investors. It has started 2024 on the right foot, climbing from $290 to $340.

The company is one of the leading names in the SASE market. The acronym stands for Secure Access Service Edge. SASE Is a framework for delivering network and security services as a cloud-based service.

Palo Alto Networks plans to Upgrade security operations centers with artificial intelligence this year. That has many analysts assuming that the company will continue to grow. Ostensibly, that is one of the reasons Palo Alto Networks has performed so well through the first month of 2024.

Palo Alto Networks primarily focuses on prevention instead of response and mitigation. The company’s flagship product is its Next-Generation Firewall (NGFW). It is there that Palo Alto Networks shines, with the firewall product quickly becoming an industry standard. With cybersecurity projected to continue to grow quickly in 2024 PANW stock is a strong choice.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.