3 Cybersecurity Stocks To Watch As AI Security Spending Gains Attention

Espionage headlines at OpenAI have turned AI security from a theoretical risk into a front page issue, and that shift puts cybersecurity and security infrastructure stocks under a far brighter spotlight. Investors now face a clear fork in the road: either lean into businesses tied to protecting AI assets or risk watching capital chase those opportunities without you. This article unpacks three stocks exposed to this news and explains why each one could matter for your portfolio.

The three stocks below are just a starting sample from this AI security angle, and the full screen surfaced 14 more mid to large cap cybersecurity and security infrastructure companies with equally compelling narratives that are not covered here. If you want to move straight from headlines to deeper research, head into the Cybersecurity and Security Infrastructure Stocks screener to identify, analyze, and prioritize the highest conviction opportunities for your watchlist.

Viavi Solutions (VIAV)

Viavi Solutions builds test, monitoring, and optical tools that help keep critical communications secure for defense, aerospace, and complex networks, which ties it directly into the AI and cybersecurity infrastructure story investors are watching now.

Viavi Solutions generates most of its revenue from Network and Service Enablement at about US$1.18b, with Optical Security and Performance Products contributing roughly US$335 million, and the business carries a market value around US$10.3b.

"Viavi is experiencing robust and sustained demand across the data center ecosystem, with customers updating optical connectivity to 400G, 800G, and now 1.6T, enabling multi-year upgrade cycles and expanding its total addressable market, which should drive structural revenue growth through 2026 and beyond."

What happens if a single assumption about how quickly those high speed projects turn into margin expansion ends up being too optimistic?

That optimism only matters if the pay-off justifies the risk, and the full narrative for Viavi Solutions shows where Viavi Solutions could see returns accelerate or stall.

Dynatrace (DT)

Dynatrace gives security focused investors a way to monitor the health and risk of complex AI heavy systems, using its observability platform to spot anomalies before they turn into outages or breaches for some of the world’s largest digital businesses.

Dynatrace runs a single Internet Software and Services operation that produced about US$2.10b in revenue, and the stock carries a market value near US$18.9b.

The shift to Dynatrace Platform Subscription is where the story gets interesting because it changes how customers consume the software and how much budget they are willing to commit.

"The shift to the Dynatrace Platform Subscription (DPS) is a game-changer that the market hasn't fully priced in. Data confirms that customers moving to DPS increase their usage and spending by 2x compared to the old model."

The key question is what happens to margins and demand if one underlying assumption about how customers adopt this new consumption model starts to crack.

If that adoption thesis is what you keep coming back to, read the full narrative for Dynatrace to see how subscription momentum, competitive pressure, and AI workloads could be interacting.

Clear Secure (YOU)

Clear Secure sits right on the screener’s theme line, using biometric identity checks to control who gets near high value assets and tying that security layer directly to frequent flyer convenience and enterprise use cases.

Clear Secure runs a secure biometric identity verification platform that produced about US$1.0b from that segment in the United States, and the stock carries a market value around US$5.7b.

Clear Secure provides exposure to a security asset that operates where physical checkpoints, digital identity, and recurring subscription economics all intersect. This is an area where many investors now expect spending to concentrate after the latest espionage headlines.

"CLEAR's rollout of automated eGates across more than 70% of its airport network continues to shift checkpoint operations toward a software and hardware model, which can further support revenue efficiency and sustain net margin strength as more lanes are converted."

What may be especially important from here is how one less visible pressure on this identity platform develops and affects long term profitability.

Those pressures can cut both ways, and the full narrative for Clear Secure shows where Clear Secure’s eGates rollout could be accelerating value or quietly masking future risk.

Seeking Alternatives Before Momentum Flies

Fresh ideas often move first and prices may follow. Spot potential breakout stories while they are still under the radar for now, before momentum gets away, and consider acting before conditions change.

• Target dependable income streams by scanning 8 dividend fortresses that aim to keep cash coming in even when sentiment turns cold.
• Look for potential future compounders with the 20 high quality undiscovered gems that surface under-followed operators before broader attention affects valuations.
• Track fast changing AI-related trends using the 92 AI infrastructure stocks that focuses on businesses supplying the tools and services supporting this development.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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