The recent cybersecurity glitch triggered by a global technological outage exposed the underlying cyber threat as the world continues to embrace internet technology. The cyber glitch came against the backdrop of the recent cyber attacks on UnitedHealth Group (NYSE:UNH), MGM Resorts (NYSE:MGM), and Caesars Entertainment (NASDAQ:CZR), two major casino operators in the country.
However, these three cloud security stocks may benefit from increased cyber threats. They will become more relevant as cyber attacks become more dangerous in the future.
These stocks are revolutionizing cybersecurity with their next-generation generative AI technologies, which detect cyber threats in advance and reduce potential attacks.
Let’s see how these three cloud security stocks leverage generative AI and other new technologies to benefit from increased cyber threats.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has been a leader in the tech industry for quite some time now, thanks to its flagship Windows OS and other software features used by billions of computers globally. However, what has kept Microsoft atop that long in the increasingly competitive tech industry is its volatility and ability to catch up with emerging tech trends.
Microsoft is now the leader in the AI industry, having invested $10 billion in Open AI in 2023. This deal allowed the company to integrate Open AI’s ChatGTP into Microsoft products and services, claiming a front row in the AI industry.
Currently, Microsoft is enrolling in its Copilot feature. This powerful next-generation generative AI chatbot will be integrated into all Microsoft products and services, including Windows and Microsoft 365. The company also plans to integrate the Copilot chatbot into its hardware, which will see Microsoft go full-scale AI.
This is a bold move by Microsoft as Wall Street acknowledged that generative AI-powered cloud security stocks are more likely to claim a larger share of the cloud security industry. These new AI-powered cyber security infrastructures can detect cyber threats before they occur. This means improved reliability within the cyber security space.
Currently, Copilot is perhaps the best generative AI chatbot in the market. The Copilot-integrated computers outperform Apple’s powerful Macbook Pro laptops. These next-generation Copilot-integrated computers have also outperformed the industry standards for AI computer processing by 20 times in power and 100 times in performance efficiency.
Microsoft’s earnings per share is now at a historical high and has a free cash flow of $21 billion, as per the recent quarter reporting. With these financial backings, it seems Microsoft is well positioned to grow its cyber security section and benefit from increased cyber threats.
Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW) carved a reputation as the largest and fastest-growing cyber security company. With a market cap of $99 billion. PANW is one of those all-round cybersecurity service providers.
The company is known for its cloud native security platforms deployed via Prisma Cloud, with deep capabilities to help organizations manage workload security.
PANW is also toe-to-toe with Microsoft in integrating generative AI technology into its cybersecurity products and services. Its Precision AI is intended to detect cyber threats and employ proactive measures to deal with the increasing threats and damages caused by these cyber security attacks.
However, PANW’s potential to benefit from increased cyber threats extends beyond its precision AI tool. The company has invested in research and development, developing a highly invested threat intelligence and security team that constantly analyzes and uncovers potential cyber threats.
Check Point Technologies Software (CHKP)
Check Point Technologies Software (NASDAQ:CHKP) had an impressive run with its highly-powered XD Horizon XDR/HD, a one-of-a-kind AI-enabled cloud security platform. CHPK uses Nvidia’s (NASDAQ:NVDA) high-performance AI technologies to secure its AI cloud infrastructure, improving its reliability amidst the increasing cyber security threats.
Like PANW, CHPK also offers all-around cybersecurity products and services, including firewalls, threat detection, end-point, and cloud security solutions.
CHPK has had a tremendous run recently, beating the Wall Street revenue estimates of $623.14 million to record $627.4 million in Q2 2024.
With its high-performance, high-efficiency capabilities, CHPK stands out as one of the cloud security stocks that may benefit from increased cyber threats.
On the date of publication, Joel Lim 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.
On the date of publication, the responsible editor held a LONG position in NVDA.
