Cybersecurity stocks like CrowdStrike (CRWD), Palo Alto Networks (PANW), and Zscaler (ZS) all dropped sharply after news came out that Anthropic is testing a new AI model with advanced cyber capabilities. According to Fortune, the model, called Mythos, is Anthropic’s most powerful yet. However, the company is planning a slow rollout due to potential security concerns. Still, the market’s reaction was clear, as the iShares Cybersecurity ETF (IHAK) fell about 3% at the time of writing, while many individual names saw even bigger losses.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
While Anthropic has not commented publicly, the reaction highlights that investors are becoming more concerned about how AI tools could change the cybersecurity landscape. In addition, this isn’t the first time cybersecurity stocks have come under pressure due to AI developments. Just last month, the sector sold off after Anthropic introduced a new code-scanning tool for its Claude model.
As AI and autonomous agents become more capable, they are making cyberattacks more sophisticated and potentially easier to execute, which puts pressure on security companies to keep up. Adding to those concerns, Anthropic previously said that a China-linked group used Claude to help automate a cyberattack. So while AI brings new opportunities, it is also creating real risks, which is why investors are reacting so strongly to developments like this.
Is IHAK Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IHAK stock based on 23 Buys, 12 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IHAK price target of $56.41 per share implies 31.6% upside potential.
