Hackers Using AI Give Cybersecurity Stocks a Shot at Momentum

Cybersecurity stocks have sold off this year alongside the rest of the software sector, but with artificial intelligence increasing the potential threats from bad actors, investors risk missing out on the burgeoning demand for their services.

“Right now software investors are selling first and asking questions later, but I think we’ll look back and see this as a really interesting time to get into security,” said Manthan Shah, who helps oversee more than $7 billion as head of US investments at WestBridge Capital. “This is one of the top areas where we’re excited about the long-term potential.”

Software stocks ...