Investors recognized artificial intelligence’s (AI) potential to transform industries, supercharging many tech stocks in recent years. That enthusiasm shifted to alarm in 2026.
AI’s transformational potential includes agentic AI that can independently execute tasks previously handled by software-as-a-service (SaaS) companies, leading to a massive sell-off in SaaS stocks. This “SaaSpocalypse” extended to the cybersecurity sector after AI giant Anthropic released artificial intelligence capable of identifying security vulnerabilities in software.
While Wall Street believes AI threatens cybersecurity companies, the reality is not so simple. Moreover, the current sell-off offers long-term investors an opportunity to buy cybersecurity stocks at substantial discounts.
This post originally appeared at The Motley Fool.