IBM’s warning of capex reallocation toward cybersecurity and AI infrastructure sparks sector-wide gains in cybersecurity shares.
Shares of CrowdStrike, Fortinet, and other cybersecurity firms surged after IBM indicated enterprise clients redirected spending toward critical areas. CrowdStrike rose over 10%, while the Global X Cybersecurity ETF climbed more than 6% in Tuesday’s session.
IBM CEO Arvind Krishna noted clients prioritized servers, storage, and cybersecurity in late June, citing supply constraints and evolving security threats. The shift suggests businesses are not cutting cybersecurity budgets despite increased AI-related expenditures.
Cybersecurity stocks have outperformed this year, with CrowdStrike up over 90% year-to-date. The rise of agentic AI has further boosted demand for authentication and verification services, reinforcing sector growth.