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Top 10 Growth Stocks in Cybersecurity

In this article, we will be taking a look at the top 10 growth stocks in cybersecurity. To skip our detailed analysis of the cybersecurity sector, you can go directly to see the Top 5 Growth Stocks in Cybersecurity.

We’ve reported before that a major growth driver in the cybersecurity industry is the fact that cyber-attacks are consistently growing across the globe. Companies are thus wracked by a sense of anxiety regarding the security of their data, which makes them likelier to invest in better, and often more expensive, cybersecurity products and services. This anxiety then translates into profits for cybersecurity companies, enabling them to consistently grow their revenues and profits.

According to a Nasdaq Investment Intelligence report, the total number of major cyber-attacks reported globally was higher in almost every month of 2020 compared to the same months in 2019 and 2018. Of the attacks in 2020, 40% were carried out using malware and 15% through account hijacking. With this growing trend of cyber-attacks, especially those targeting American businesses, the US government considered cybersecurity an important national security issue. Resultantly, the Biden administration released its National Cybersecurity Strategy this March to make the American digital ecosystem safer for all. The strategy is built on the foundation of five pillars: defending critical infrastructure, disrupting and dismantling threat actors, shaping market forces to drive security and resilience, investing in a resilient future, and forging international partnerships to pursue shared goals.

With increased governmental support for the cybersecurity sector, companies operating in this sector, like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Fortinet, Inc. (NASDAQ:FTNT), and Palo Alto Networks, Inc. (NYSE:PANW) are set to benefit and reach new highs. According to a McKinsey report published in October, around $150 billion were spent on cybersecurity in 2021, representing a growth of 12.4% annually. McKinsey estimates that at this rate, the cybersecurity sector represents a total addressable market of $1.5 trillion to $2 trillion. In such an environment, cybersecurity stocks are steadily becoming high-priority investments. This is why we have compiled a list of the top cybersecurity growth stocks to invest in today.

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Let’s now take a look at the top 10 growth stocks in cybersecurity.

Our Methodology

We have selected cybersecurity growth stocks by going through the top holdings of several cybersecurity exchange-traded funds (ETFs), such as the First Trust Nasdaq Cybersecurity ETF (NASDAQ:CIBR) and the ETFMG Prime Cyber Security ETF (NYSEMKT:HACK). These stocks have year-over-year revenue growth rates above 25%, and these revenue growth rates are among the highest in the cybersecurity sector. The stocks are ranked on the basis of these revenue growth rates, from the lowest to the highest rate. We have also used Insider Monkey’s hedge fund data for the fourth quarter, when 943 hedge funds were tracked, to show the popularity of these stocks among elite hedge funds today.

Top Growth Stocks in Cybersecurity

10. Palo Alto Networks, Inc. (NYSE:PANW)

Revenue Growth Over the Past Year as of March 9: 26.73%

Number of Hedge Fund Holders: 85

Palo Alto Networks, Inc. (NYSE:PANW) is a systems software company based in Santa Clara, California. The company provides cybersecurity solutions across the globe. It offers products such as firewall appliances and software, Panorama, a security management solution to control firewall appliances and software, and more.

An Outperform rating was reiterated on Palo Alto Networks, Inc. (NYSE:PANW) shares on February 23 by Credit Suisse analysts. The firm also raised its price target on the shares from $225 to $235.

Palo Alto Networks, Inc. (NYSE:PANW) has been performing well in 2023, having increased the number of cybersecurity product deals worth under $1 million by 19% year-over-year in the second quarter of 2023. The company also increased the number of its deals worth under $10 million by 144% year-over-year in the same quarter. Palo Alto Networks, Inc. (NYSE:PANW) ended this quarter with $6.1 billion in cash, compared to $3.7 billion in debt. This financial position allowed the company to repurchase about $250 million worth of stock. For the third quarter, the company forecasts revenue growth of 22-25% year-over-year, with expected revenue of $2.2 billion to $2.25 billion.

Citadel Investment Group was the largest shareholder in Palo Alto Networks, Inc. (NYSE:PANW) at the end of the fourth quarter, holding 3.6 million shares. In total, 85 hedge funds were long the stock, with a total stake value of $3.3 billion.

ClearBridge Investments, an investment management firm, mentioned Palo Alto Networks, Inc. (NYSE:PANW) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Stock selection within the IT sector was the main detractor from relative performance during the period. In addition to rate hikes compressing the multiples of longerduration, high growth companies, recession concerns were also a headwind. IT companies which had proven resilient against customer budget reductions earlier in the year are starting to feel the impact of spending slowdowns as companies further scrutinize expenses in light of economic uncertainty. For example, Palo Alto Networks, Inc. (NASDAQ:PANW), which provides enterprise security solutions including next-generation firewalls and threat detection software, faced a challenging environment as customers delayed purchases and orders. However, we remain convinced of the company’s long-term growth prospects as an industry leader in a critical field and as digital attacks and ransomware continue to grow.”

Palo Alto Networks, Inc. (NYSE:PANW), like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Fortinet, Inc. (NASDAQ:FTNT), and Palo Alto Networks, Inc. (NYSE:PANW), is among the top performers in the cybersecurity space today.

9. Rapid7, Inc. (NASDAQ:RPD)

Revenue Growth Over the Past Year as of March 9: 27.96%

Number of Hedge Fund Holders: 26

Rapid7, Inc. (NASDAQ:RPD) is a provider of cybersecurity solutions based in Boston, Massachusetts. The company offers a cloud-native insight platform offering customers the ability to create and manage analytics-driven cybersecurity risk management programs.

Shrenik Kothari at Baird holds an Outperform rating on Rapid7, Inc. (NASDAQ:RPD) shares as of February 9. The analyst also placed a $56 price target on the stock.

During the first nine months of 2022, Rapid7, Inc.’s (NASDAQ:RPD) revenue was 30.5% higher than it was during the same period the year before. In the fourth quarter of 2022, the company’s revenue was $184.48 million, beating estimates by $4.89 million. Analysts see an upside potential of 3.39% on Rapid7, Inc. (NASDAQ:RPD) shares as of March 9. The average price target on the stock is $51, with a high forecast of $60.

In total, 26 hedge funds were long Rapid7, Inc. (NASDAQ:RPD) in the fourth quarter. Their total stake value was $254 million.

Chartwell Investment Partners, an affiliate of Carillon Tower Advisers, an investment management company, mentioned Rapid7, Inc. (NASDAQ:RPD) in its third-quarter 2022 investor letter. Here’s what the firm said:

“The Fund’s largest underperformer was Rapid7, Inc. (NASDAQ:RPD). Rapid7 is a software company focused on enterprise cybersecurity. The company reported a mixed second quarter, meeting expectations for revenues and margins. The management team’s commentary was cautious however, as they stated that the current macro environment is leading to an elongated sales cycle, particularly in Europe. Also an important segment of their offerings, Vulnerability Management, is showing a modest growth deceleration. Overall the entire software sector is under pressure as valuation is being compressed across the board. Given that cybersecurity software companies still have the best visibility within the software industry going forward, and since we want to maintain some software exposure within the portfolio, we are maintaining our position in Rapid7.”

8. Fortinet, Inc. (NASDAQ:FTNT)

Revenue Growth Over the Past Year as of March 9: 32.17%

Number of Hedge Fund Holders: 47

Fortinet, Inc. (NASDAQ:FTNT) is an information technology company providing cybersecurity and networking solutions across the globe. It is based in Sunnyvale, California. Some of the products it offers include the FortiGate hardware and software licenses providing security and networking functions.

On February 14, Goldman Sachs’ Gabriela Borges initiated coverage of Fortinet, Inc. (NASDAQ:FTNT) shares with a Buy rating and a $73 price target.

Fortinet, Inc. (NASDAQ:FTNT) is currently among the top-performing companies in the cybersecurity sector, demonstrating consistent growth. In 2023, the company estimated its total addressable market (TAM) to be $153 billion. This means the company’s products can generate this amount of revenue if it managed to obtain 100% of the market share for these products. In the fourth quarter, Fortinet, Inc. (NASDAQ:FTNT) reported revenues of $1.28 billion. The company’s year-over-year revenue growth of 32.17% was mainly driven by a 42.5% increase in product revenues.

Out of the 943 hedge funds tracked by Insider Monkey in the fourth quarter, 47 funds were long the stock, with a total stake value of $1.9 billion. Viking Global was the largest shareholder in the company, holding 7.1 billion shares.

7. Splunk Inc. (NASDAQ:SPLK)

Revenue Growth Over the Past Year as of March 9: 36.66%

Number of Hedge Fund Holders: 52

Splunk Inc. (NASDAQ:SPLK) is a provider of software and cloud solutions in the US and internationally. The company is based in San Francisco, California. It provides cybersecurity products such as Splunk Solutions, under which fall Splunk Security solutions that enable cybersecurity teams to streamline their security operations.

Keith Bachman at BMO Capital holds an Outperform rating on Splunk Inc. (NASDAQ:SPLK) shares as of March 2. The analyst also raised his price target on the stock from $100 to $113.

The company’s revenue in the fourth quarter was $1.25 billion, beating analyst expectations by $177 million. Splunk Inc.’s (NASDAQ:SPLK) annual recurring revenue also increased by 15.5% year-over-year, driven by cloud ARR growth. This revenue stream increased by 33% to $1.8 billion. The company has also managed to grow its customer base, through which it generated over $1 million in ARR in the fourth quarter.

Splunk Inc. (NASDAQ:SPLK) was found among the 13F holdings of 52 hedge funds in the fourth quarter. Their total stake value was $1.2 billion.

Investment management company Vulcan Value Partners mentioned Splunk Inc. (NASDAQ:SPLK) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“We exited our position in Splunk Inc. (NASDAQ:SPLK) during the quarter. A number of developments caused us to question whether Splunk’s competitive position was eroding. Splunk is a premium product, and less expensive alternatives have made progress increasing the quality of their offerings. Our research has confirmed Splunk is losing market share to these players, including Microsoft’s Sentinel. Sentinel has made a number of improvements over time and integrates with Microsoft’s other products. Notably, both of Splunk’s Co-Presidents left Splunk in 2022 to work for Microsoft. Splunk’s Chief Financial Officer left a few months later. Before the CFO left, Splunk lowered its annual recurring revenue guidance for the year. While the company attributed the change to the macro environment, we were unable to differentiate to what extent the slowdown was caused by the macro environment versus competitive factors. Based on our primary research and competitive concerns, we no longer had sufficient confidence in Splunk’s value stability. Splunk no longer qualifies for investment, and we exited the position.”

6. Okta, Inc. (NASDAQ:OKTA)

Revenue Growth Over the Past Year as of March 9: 42.92%

Number of Hedge Fund Holders: 59

Okta, Inc. (NASDAQ:OKTA) is an internet services and infrastructure company based in San Francisco, California. The company offers identity solutions and other products and services used to manage and secure identities.

BMO Capital’s Keith Bachman holds an Outperform rating on Okta, Inc. (NASDAQ:OKTA) shares as of March 2. The analyst also raised his price target on the shares from $80 to $94.

In the fourth quarter, Okta, Inc. (NASDAQ:OKTA) reported revenues of $510 million, beating analyst estimates by $20.55 million. The company has a net customer retention rate of 120% as of this March, showing that customers using its products are continuing to use them and spend more on them. The company’s customer base increased by 17% year-over-year in the fourth quarter, numbering then at 17,6000.

Citadel Investment Group was the largest shareholder in Okta, Inc. (NASDAQ:OKTA) at the end of the fourth quarter, holding 2.1 billion shares. In total, 59 hedge funds were long the stock, with a total stake value of $1.3 billion.

Okta, Inc. (NASDAQ:OKTA), like CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Fortinet, Inc. (NASDAQ:FTNT), and Palo Alto Networks, Inc. (NYSE:PANW), is one of the most popular cybersecurity stocks among elite hedge funds today.

Click to continue reading and see the Top 5 Growth Stocks in Cybersecurity.

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Disclosure: None. Top 10 Growth Stocks in Cybersecurity is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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This company is completely debt-free.

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It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

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No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!