We recently compiled a list of the 11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts. In this article, we are going to take a look at where Gen Digital Inc. (NASDAQ:GEN) stands against the other best cybersecurity stocks to buy.
The widespread growth of internet usage has seamlessly integrated connectivity into the daily lives of individuals and businesses. This expansion has also created greater opportunities for cybercriminals to engage in financial theft, compromise sensitive information, and disrupt critical infrastructure. Despite progress in reducing response times to cyber risks, it still takes organizations an average of 73 days to contain an incident. As organizations navigate an increasingly complex cyber threat landscape, staying ahead of emerging cybersecurity trends has become crucial. Amid the rise in both the volume and sophistication of cyberattacks, global spending on cybersecurity products and services reached $200 billion in 2024, a sharp increase from $140 billion in 2020, according to McKinsey. Additionally, the cybersecurity market is projected to grow at an annual rate of 12.4% between 2024 and 2027, exceeding historical growth levels as organizations intensify efforts to counter evolving threats.
The rise of artificial intelligence also presents a dual opportunity for cybersecurity prospects: securing AI systems and leveraging AI to bolster security capabilities. These technologies enhance threat detection, automate responses, and improve predictive analytics, allowing for more proactive and efficient defenses against increasingly sophisticated attacks. According to McKinsey, AI is broadening the scope of what is already a $2 trillion market opportunity for cybersecurity providers. The firm further states that securing AI has emerged as a distinct cybersecurity market segment, projected to grow from $122 million today to $255 million by 2027. Additionally, as more organizations shift workloads from public cloud environments to private clouds, they face new expenses, further increasing the capturable value for cybersecurity vendors.
On the other hand, as AI technology advances, concerns around data privacy and risk management are escalating for individuals and businesses alike. The World Economic Forum projected earlier this year that AI advancements could drive cyber incidents and data breaches to unprecedented levels in 2024, following a staggering 72% increase in breaches over the past year.
Cybersecurity Regulations and Policies
President-elect Donald Trump's return, coupled with his commitment to a more inward-focused foreign policy, is expected to bring new cyber threats, reduced regulations across most industrial sectors, and the possibility of business-friendly federal privacy legislation. However, the overall regulatory landscape will likely shift toward less emphasis on compliance and greater focus on safeguarding critical infrastructure and technology firms, according to Michael Bahar, co-lead of global cybersecurity and data privacy at Eversheds Sutherland.