The recent cybersecurity breach caused by a global technology outage has exposed the lurking cyber threat as the world continues to embrace Internet technology. The cyber glitch comes on the back of recent cyber attacks on UnitedHealth Group (NYSE:UNH), MGM Resorts (NYSE:MGM), and Caesars Entertainment (NASDAQ:CZR), which are two of the country's major casino operators.
However, these three cloud security stocks could benefit from the growing cyber threat. They will become even more important as cyber attacks become more severe in the future.
These stocks are revolutionizing cybersecurity with next-generation generative AI technologies that detect cyber threats early and mitigate potential attacks.
Let's see how these three cloud security stocks are leveraging generative AI and other emerging technologies to take advantage of growing cyber threats.
Microsoft (MSFT)
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Microsoft (NASDAQ:Microsoft) has long been a leader in the technology industry, thanks to its groundbreaking Windows operating system and other software features used by billions of computers worldwide. However, what has kept Microsoft ahead of the curve in the increasingly competitive technology industry for so long is its volatility and ability to keep up with emerging technology trends.
Microsoft is now a leader in the AI industry, having invested $10 billion in Open AI in 2023. This deal has allowed the company to integrate Open AI’s ChatGTP into Microsoft products and services, putting it at the forefront of the AI industry.
Microsoft is currently rolling out Copilot. This next-generation powerful chatbot will be integrated into all Microsoft products and services, including Windows and Microsoft 365. The company also plans to integrate Copilot into its devices, which will take Microsoft’s AI-focused approach to the big picture.
This is a bold move by Microsoft, as Wall Street has acknowledged that AI-powered cloud security stocks are likely to capture a larger share of the cloud security industry. These new AI-powered cybersecurity infrastructures can detect cyber threats before they happen. This means improved reliability in cybersecurity.
Currently, Copilot is probably the best intelligent chatbot on the market. Computers integrated with Copilot outperform Apple’s powerful Macbook Pro laptops. The next-generation computers integrated with Copilot also outperform the industry standard for intelligent computer processing by 20 times in power and 100 times in performance efficiency.
Microsoft’s earnings per share are now at an all-time high and it has $21 billion in free cash flow, according to its latest quarterly report. With this financial boost, Microsoft appears well positioned to grow its cybersecurity division and capitalize on the growing cyber threat.
Palo Alto Networks (PANW)
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Palo Alto Networks (NASDAQ:They appeared) has earned a reputation as the largest and fastest growing cybersecurity company. With a market cap of $99 billion, PANW is one of the comprehensive 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 also competes with Microsoft in integrating generative AI technology into its cybersecurity products and services. Precision AI aims to detect cyber threats and use proactive measures to deal with the increasing threats and damage caused by these cybersecurity attacks.
However, PANW’s ability to take advantage of the growing cyber threats goes beyond its sophisticated AI tool. The company has invested in R&D, developing a dedicated security and threat intelligence team that constantly analyzes and uncovers potential cyber threats.
Check Point Technologies (CHKP) Software
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Check Point Technologies Software (NASDAQ:CHKP) has had a great performance with XD Horizon XDR/HD, a unique AI-powered cloud security platform. CHPK uses Nvidia (NASDAQ:NVDA program) High-performance AI technologies to secure cloud AI infrastructure and improve its reliability in the face of increasing cybersecurity threats.
Like PANW, CHPK also offers comprehensive cybersecurity products and services, including firewalls, threat detection, endpoints, and cloud security solutions.
CHPK has been on a tear recently, beating Wall Street's revenue estimate of $623.14 million to post $627.4 million in Q2 2024.
With its high performance and efficiency capabilities, CHPK stands out as one of the cloud security stocks that could benefit from the growing cyber threats.
As of 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 author, and are subject to InvestorPlace.com's publishing guidelines.
At the date of publication, the responsible editor held a long-term position at NVDA.
