Bank of America has identified SentinelOne, Zscaler and CrowdStrike as the top cybersecurity stocks positioned to benefit from artificial intelligence-driven security demand, as enterprises expand defenses beyond traditional perimeters.
The bank’s coverage highlights a shift in enterprise security priorities toward safeguarding machine identities, cloud workloads and AI systems, a trend expected to drive sustained spending by chief information security officers (CISOs). BofA notes that AI is reshaping both attack vectors and defense strategies, creating opportunities for vendors that can consolidate tools around AI-native platforms.
SentinelOne received a Buy rating from BofA, with the bank citing progress in diversifying its revenue base. The company’s AI, data and cloud products now account for roughly half of its annual recurring revenue (ARR), up from a heavier reliance on endpoint security. Its Singularity platform, which automates threat detection and response, is highlighted as a key differentiator. Recent product updates include the Purple AI Agentic Investigation capability for autonomous threat analysis and plans to integrate security tools with Amazon Bedrock AgentCore. Citizens maintained a Market Outperform rating on the stock.
Zscaler also received a Buy rating, with BofA emphasizing its alignment with Zero Trust adoption, network transformation and AI-driven workflows. The bank argues that Zscaler’s cloud-native architecture and expanding AI capabilities strengthen its strategic position within customer environments, supporting a premium valuation multiple.
CrowdStrike’s stock was flagged ahead of its upcoming earnings report, with BofA adjusting estimates to reflect AI’s transition from perceived threat to platform advantage. Multiple analysts—Benchmark, Wells Fargo and TD Cowen—have raised price targets ahead of the August 26 earnings release, citing strong demand for AI security solutions and a robust sales pipeline.
SailPoint was assigned a Neutral rating by BofA, which views the company as foundational infrastructure for AI-era identity governance due to its focus on machine identities and cloud workloads. The bank acknowledges SailPoint’s progress, including the completion of the Entro Security acquisition and the launch of Agentic Fabric for governing agent identities. However, BofA maintains a cautious stance, citing execution risk on new products and a more balanced risk-reward profile compared with peers. Truist and Cantor Fitzgerald reiterated Buy or Overweight ratings following SailPoint’s investor day.
