Software stocks rebound from AI sell-off as cybersecurity sector surges
By
Oliver Renick
Pulled from the oven just right. Trustworthy, fact-dense, deeply satisfying.
Summary
Software stocks are rebounding from an AI-driven sell-off earlier this year, with cybersecurity stocks leading the charge. The Amplify Cybersecurity ETF (HACK) is up over 30% in 2026, driven by gains in CrowdStrike (up 67%) and Palo Alto Networks (up 63%). Industry experts link increased cybersecurity demand to AI expansion, noting that more AI adoption creates more assets to secure, which also fuels M&A potential in the sector. Options traders had been pivoting from semiconductor ETFs to software ETFs as early as mid-May, anticipating the comeback.
Key quotes
· 2 pulledAI equals more cybersecurity demand as there is more to secure.
We think this also plays into M&A potential for the industry.
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