Security Companies Get a Boost From AI Threats ... Industry Expects Growth to Continue on Stronger Demand

The spread of AI is increasing the need for security alongside broader adoption in the workplace. According to the industry on the 12th, as companies expand AI adoption, the importance of cybersecurity is rising. As stronger AI models also widen the possibility of malicious cyberattacks, AI-related risks are coming to the fore, and cybersecurity companies are benefiting. The industry expects security demand to keep growing.

Against this backdrop, interest in AI for Security is expanding, and interest in Security for AI is also growing. Industry attention is translating into security investment, and the rising threat to security from AI expansion is supporting the trend of greater investment.

The background to the increased security investment is the rise in cyberattacks using AI. According to IBM's '2026 Cost of a Data Breach Report,' 1 in 4 malicious breach incidents involved AI-enabled attacks. The share of AI-enabled attacks rose 56% from a year earlier. IBM said AI-enabled attacks are rapidly changing the economic structure of cyberattacks.

Gartner unveiled this year's 'Global Information Security 2026' insights and said companies are increasing security spending to respond to cyberthreats and strengthen resilience. Gartner also projected that global information security spending this year will reach USD 244 billion.

The growing demand for security has translated into earnings growth for related companies. Fortinet posted record annual revenue in the previous fiscal year, with annual revenue of USD 6.8 billion. CrowdStrike Holdings also posted record annual revenue in the previous fiscal year, and its fiscal 2026 annual revenue was USD 4.81 billion. Palo Alto Networks and Cloudflare also showed growth.

Against this backdrop, rising expectations for companies also pushed their stock prices higher. As of October 9, Fortinet hit a 52-week high at USD 194.75, while CrowdStrike Holdings closed at USD 275.04 on October 9 and extended its gains. Cloudflare reached USD 360.93 on October 9 and maintained its upward trend despite short-term declines on the 7th and 8th. Palo Alto Networks also continued its upward momentum, reaching USD 418.78 on October 9.

Recent series of hacking incidents in the domestic financial sector heightened the need for stronger security, boosting interest in domestic security companies as well. In the market, buying centered on security stocks such as Genians, AhnLab, Raon Secure, MonitorLab, and Xgate, and related shares posted sharp gains.

Major stocks showed overall strength, although there were short-term differences in gains and losses. As of the 12th, Genians closed at KRW 22,200, edging down from the previous day, but maintained a strong cumulative rise over the past three months. AhnLab extended its rally since September and held the KRW 78,000 level. Raon Secure closed at KRW 16,350, up 6.24% from the previous day and accompanied by heavy trading volume. Xgate closed at KRW 18,550, rising from the previous day and continuing its strength.

These companies posted strong results last year and are moving to expand their businesses to meet demand from companies and public institutions amid the AI trend. The industry sees market demand rising as the speed and scale of cyberattacks increase. Accordingly, it expects the growth of security companies to continue for the time being on the back of rising demand driven by the expansion of cyberattacks.

Source: TECHWORLD · Kim Hye-jin
Original: https://www.epnc.co.kr/news/articleView.html?idxno=408059

References

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