This year, it sure feels as though the dominant technology investing conversation is artificial intelligence (AI). While that’s highlighting adjacent and related tech concepts, such as semiconductors, some previously beloved tech segments are being overshadowed.
That includes cybersecurity. Simply because AI is the talk of tech town today, that doesn’t mean cybersecurity lost relevance. Actually, the opposite is true, and investors were reminded of that point on Thursday when several U.S. government agencies were hit by cyberattacks.
The US Cybersecurity and Infrastructure Security Agency (CISA) said that it was working with several government agencies that reportedly experienced cyber intrusions. The severity of the attacks wasn’t immediately dangerous, but the incidents serve as a reminder that for all the AI fervor, cybersecurity remains relevant.
QQQ, QQQM Have AI, Cybersecurity Credentials
There are some dedicated cybersecurity ETFs on the market, and the same is true of AI ETFs, but QQQ and QQQM offer one-stop shopping for investors seeking exposure to those themes. That’s pertinent because while AI is drawing significant adulation in the investment community, the recent cyberattacks on government entities add to a concerning list of such events in recent months.
“But the news adds to a growing tally of victims of a sprawling hacking campaign that began two weeks ago and has hit major US universities and state governments. The hacking spree mounts pressure on federal officials who have pledged to put a dent in the scourge of ransomware attacks that have hobbled schools, hospitals and local governments across the US,” reported Sean Lyngaas for CNN.
Cybersecurity names residing in the QQQ and QQQM portfolios include Palo Alto Networks (NASDAQ: PANW) and Fortinet (NASDAQ: FTNT), among others. Adding to the allure of QQQ and QQQM as avenues for harnessing both AI and cybersecurity is the point that these disruptive technologies intersect with one another.
In fact, some experts believe that AI is critical in bolstering and modernizing cybersecurity efforts. That’s particularly true when considering proliferation of other innovative tech concepts, such as blockchain and cloud computing, at the corporate level.
“Cybersecurity AI solutions bridge gaps in an organization’s security technology and instill a culture of security throughout the organization. It handles repetitive events and flags any outliers to provide continuous, real-time reporting and monitoring of all systems,” reported Saugat Sindhu for Security Magazine.
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