The rise of artificial intelligence (AI) and cloud computing has revolutionized business operations while also increasing cybersecurity risks. As threats become more advanced, AI-driven security solutions are now crucial for safeguarding sensitive data, preventing breaches and detecting fraud in real-time.

This shift has positioned AI-powered cybersecurity as a key long-term investment theme, driving growth opportunities for leading companies like CrowdStrike (CRWD Quick QuoteCRWD - Free Report) & Cloudflare Inc (NET Quick QuoteNET - Free Report) .

What is Cloud AI?

Cloud AI refers to AI tools and services that run on cloud computing platforms like Google Cloud, which is part of Google's parent company, Alphabet Inc. (GOOGL Quick QuoteGOOGL - Free Report) ; Amazon Web Services (AWS), a division of Amazon (AMZN Quick QuoteAMZN - Free Report) ; and Microsoft Azure, a division of Microsoft (MSFT Quick QuoteMSFT - Free Report) . Instead of installing software on a personal computer or a company's servers, businesses can use AI-powered tools hosted in the cloud to analyze massive amounts of data, detect anomalies and make security decisions.

How AI is Revolutionizing Cybersecurity

Traditional cybersecurity tools rely on rules and signatures to detect threats, which means they need to be updated regularly to recognize new attacks. However, cybercriminals are constantly finding new ways to break into systems. AI-powered cybersecurity, on the other hand, learns and adapts to new threats without human intervention.

To highlight some of the key benefits, AI-powered cybersecurity enables real-time threat detection, instantly identifying suspicious activities within networks to prevent data breaches before they occur. AI can also take immediate action through automated incident response, such as blocking malicious connections or isolating compromised systems without human intervention. Additionally, AI plays a crucial role in fraud prevention, detecting fraudulent activities in banking, e-commerce and online transactions with high accuracy. One of its most significant advantages is zero-day attack defense, where AI identifies and mitigates never-before-seen cyber threats, ensuring proactive security against evolving cyber risks.

Bet on Two AI Cybersecurity Leaders: CRWD & NET

Considering the backdrop, investors should include these two AI Cybersecurity stocks in their portfolios.

CrowdStrike

CrowdStrike's AI-native cybersecurity platform enables businesses and governments to proactively detect and stop cyber threats before they escalate. Its cloud-based Falcon platform integrates AI-driven threat intelligence, identity protection and next-gen SIEM, driving rapid enterprise adoption. With increasing consolidation of security tools and growing demand for AI-powered protection, CrowdStrike is positioned as a leader in modern cybersecurity transformation. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cloudflare

Cloudflare leverages AI-driven security to protect global enterprises, including government agencies, from evolving cyber threats. Its platform mitigates DDoS attacks, enhances Zero Trust architecture and delivers high-performance AI-powered security. With a scalable, efficient network and increasing enterprise adoption, #2 Ranked Cloudflare is positioned for long-term growth as cybersecurity, AI and digital modernization remain top enterprise priorities.