The Cybersecurity Market Is Set to Double to $300 Billion by 2030. Here's the Best Artificial Intelligence (AI) Stock to Buy Now. - The Motley Fool

By Harsh Chauhan – Feb 27, 2026 at 8:32AM EST KEY POINTS Palo Alto Networks' stock has dipped in 2026 so far, but this could be an opportunity for savvy investors. The cybersecurity market is on track to increase substantially in the long run, driven by such catalysts as AI. The stock seems poised for healthy gains in coming years due to the double-digit growth it could deliver. Artificial intelligence (AI) is having a positive impact on the cybersecurity industry, helping companies in this sector automate threat detection, analyze large datasets quickly, and improve response times to cybersecurity incidents. Grand View Research predicts that the global cybersecurity market could hit a whopping $500 billion in revenue by 2030. The market is poised to clock a compound annual growth rate (CAGR) of almost 13% between 2025 and 2030, suggesting it will double from a size of around $241 billion in 2024. The research firm also points out that the adoption of AI in the cybersecurity space could increase at a CAGR of 24% during this period. That's not surprising, given the advantages of AI in cybersecurity. As a result, now seems like a good time to buy shares of Palo Alto Networks ( PANW +1.00% ), one of the leading names in the cybersecurity industry that's on track to benefit from the growing adoption of AI in this space. Let's see why Palo Alto may be the best cybersecurity-oriented AI stock to buy right now. Image source: Getty Images. Palo Alto Networks is already capitalizing on AI adoption in cybersecurity Palo Alto stock has been under pressure of late. The company's weaker-than-expected earnings guidance for the current quarter and concerns that Anthropic's cybersecurity-focused model will disrupt the cybersecurity industry and bring pain for traditional companies such as Palo Alto have sent its shares south in 2026. The cybersecurity stock has lost almost 22% of its value this year. However, this is an opportunity for savvy investors to buy Palo Alto. The company has been integrating AI-focused tools into its cybersecurity offerings for years now. Not surprisingly, Palo Alto is now witnessing healthy adoption of its AI-based cybersecurity products. For instance, Palo Alto's Prisma AIRS platform, which helps enterprises secure their various AI assets, such as applications, agents, models, and data, through the entire life cycle from development to deployment, saw a 3x sequential increase in the number of customers in the second quarter of fiscal 2026 (which ended on Jan. 31). What's more, Palo Alto is positioning itself to capitalize on the healthy growth in the AI cybersecurity market by acquiring new companies. Its recently announced acquisition of Koi is poised to further enhance the Prisma AIRS platform, as it will now allow Palo Alto to secure AI agents and tools. Meanwhile, the recently concluded acquisition of Chronosphere is set to be another catalyst for Palo Alto. Chronosphere provides an observability platform that enables customers to monitor their AI assets, and it paves the way for Palo Alto to dive into a market expected to clock a 25% annual growth rate through the end of the decade. Expand NASDAQ: PANW Palo Alto Networks Today's Change (1.00%) $1.68 Current Price $169.13 KEY DATA POINTS Market Cap $137B Day's Range $167.70 - $172.03 52wk Range $139.57 - $223.61 Volume 324K Avg Vol 10M Gross Margin 73.50% The good part is that the various AI-focused tools that Palo Alto is offering to customers are helping it build a solid revenue pipeline. Its remaining performance obligations (RPO) increased by 23% year over year in fiscal Q2 to $16 billion, up two points over the year-ago period. RPO is the total value of a company's contracts yet to be fulfilled at the end of a period. The fact that this metric increased at a stronger pace than the 15% growth in Palo Alto's revenue last quarter suggests that the company's top-line growth is on track to get better. The good news for Palo Alto investors is that it is forecasting a 28% increase in its RPO this fiscal year to just over $20 billion. The company's overall revenue growth is anticipated to jump by 22% to 23% in fiscal 2026 to $11.29 billion, a nice acceleration over last year's 15% jump. Looking ahead, analysts expect healthy double-digit revenue growth from Palo Alto. It can do better than that on the back of its improving revenue pipeline and the potential growth of the AI-driven cybersecurity market. PANW Revenue Estimates for Current Fiscal Year data by YCharts Investors can expect a turnaround in the stock's fortunes Palo Alto's accelerating growth is likely to be rewarded with more upside by the market, especially given its potential to outpace analysts' expectations. Assuming Palo Alto manages to grow revenue at an annual rate of 25% over the next four years, its top line could reach $27.5 billion by 2030. The stock is trading at 12 times sales right now, a premium to the U.S. technology sector's average sales multiple of 8.2. Even if it trades in line with the tech sector's average in 2030, its market capitalization could jump to $225 billion (based on the projected revenue seen in the previous paragraph). That points toward potential gains of 94% from current levels, which is why investors can consider buying this tech stock while it is beaten down. Read Next Mar 16, 2026 By Robert Izquierdo 2 Top Cybersecurity Stocks to Buy in March Mar 13, 2026 By Leo Sun CrowdStrike vs. Palo Alto Networks: Which Cybersecurity Stock Will Win 2026? Mar 10, 2026 By Bryan White Palo Alto Networks Just Made a $25 Billion Bet on 1 Security Platform. Is the Stock a Buy? Mar 8, 2026 By Chris Neiger 2 Top Cybersecurity Stocks to Buy in March Feb 22, 2026 By Geoffrey Seiler Is It Time to Buy Palo Alto Networks Stock on the Dip? Feb 22, 2026 By Anthony Di Pizio 1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $160 and Hold for the Long Term ABOUT THE AUTHOR Harsh Chauhan is a contributing Motley Fool technology analyst covering semiconductors, consumer electronics, artificial intelligence, and software. Harsh previously worked as a journalist for CCN Markets covering crypto and macroeconomics, a contributor at Capital 10x covering metals, mining, and industrial stocks, and a research associate at Zacks Investment Research. He holds a bachelor’s degree in commerce from St. Xavier’s College in Kolkata, India. TMFTechJunk13 @techjunk13 STOCKS MENTIONED Palo Alto Networks NASDAQ: PANW $169.13 (+1.00%) +$1.68 *Average returns of all recommendations since inception. Cost basis and return based on previous market day close.