AI Risks and Calls for "Slowdown" Intensify; U.S. Cybersecurity Stocks Surge Collectively

According to information from Zhihu Finance APP, on Monday, cybersecurity stocks generally rose. Investors' concerns about the potential harm AI could cause to humans intensified, while some industry leaders called for slowing down AI development. As a result, funds shifted toward the cybersecurity and enterprise software sectors.

Regarding individual stocks, CrowdStrike (CRWD.US) surged more than 11%, and Palo Alto Networks (PANW.US) rose over 10%. Palo Alto CEO Nikesh Arora commented on the potential slowdown in AI development, stating that security companies must stand at the "forefront," anticipate various scenarios, and build framework solutions to help secure future outcomes. Okta (OKTA.US), Netskope (NTSK.US), Rubrik (RBRK.US), Fortinet (FTNT.US), Check Point Software (CHKP.US), and Microsoft (MSFT) also posted significant gains. Microsoft's cybersecurity business contributed substantial revenue.

Evercore ISI analyst Kirk Materne stated in a client report that the demand for cybersecurity and infrastructure should remain largely “orthogonal” to the pace of frontier model development. Regardless of whether autonomous agents enter enterprises faster or slower than expected, they will still need to be protected, governed, and monitored, with controlled access to critical enterprise data. Therefore, the structural demand backdrop for cybersecurity and certain infrastructure companies should remain relatively intact, irrespective of the rate of frontier model training.

Materne added that Okta, SailPoint (SAIL.US), Palo Alto Networks, and CrowdStrike should all benefit, as identity management remains enterprises’ "top priority." The latter two, as platform vendors, can offer integrated visibility and response across a broader security stack, making them most likely to capture related spending over time.

Other enterprise software stocks also rose on Monday, with ServiceNow (NOW.US), IBM (IBM.US), Adobe (ADBE.US), and Salesforce (CRM.US) among the top gainers. Materne noted that as pessimism regarding the endgame of AI-driven software disruption continues to ease, Salesforce and ServiceNow may increasingly attract longer-duration GARP/value investors.

Over the weekend, Anthropic CEO Dario Amodei warned that the AI industry needs to slow model development to avoid potential disasters. Shortly after, OpenAI CEO Sam Altman stated that the pace of frontier AI development needs to be managed but should not stop altogether. SpaceX CEO Elon Musk, who rarely agrees with Amodei and Altman on such topics, also said the industry must slow down somewhat. Microsoft CEO Satya Nadella joined the discussion, stating that AI development requires a "measured pace." The Windows maker also released a draft code of conduct, “Human-Centered AI: Code of Conduct,” outlining the expected behaviors and values of its internal MAI model series.

Analysts believe that although the debate over the pace of AI development continues, the need for security, governance, and identity management may continue to support the cybersecurity sector.