Dan Ives Predicts 2026 as AI Inflection Point for Software and Cybersecurity Sectors

Dan Ives, a tech analyst at Wedbush Securities, appeared on CNBC’s Closing Bell on December 19, 2025, to present his 2026 tech sector outlook, emphasizing the year as a pivotal inflection point for the AI trade—specifically in software and cybersecurity [1]. His comments align with broader industry trends identified by PitchBook, which reports AI is propelling the next phase of cybersecurity investment amid rising AI-driven threats (agentic systems, polymorphic malware, deepfake social engineering) and demand for AI-native defense platforms [4]. Governments and enterprises are scaling cyber budgets, prioritizing model-level protection and secure software pipelines, transforming AI security from a reactive cost center to strategic infrastructure [4].

Ives names CrowdStrike and Palo Alto Networks as top cybersecurity picks, noting their positions as leaders in AI-driven solutions [2][3]. CrowdStrike has seen 41% YTD gains in 2025, while Palo Alto Networks has gained 2% [2][3]. He dismisses AI bubble concerns, framing the technology as part of a “4th Industrial Revolution” where trillions in investments are driving long-term transformation [2].

1. Alignment with Industry Investment Trends
   : Ives’ focus on AI cybersecurity mirrors PitchBook data showing accelerating investment in AI-native defense solutions, indicating a consensus on the sector’s growth potential [4].
2. Dual AI Impact
   : AI is both a source of new cyber risks (evolving threats) and a solution (advanced defense), creating a self-reinforcing cycle of innovation and demand in cybersecurity [4].
3. Long-Term Transformation Narrative
   : By framing AI as a “4th Industrial Revolution,” Ives emphasizes sustained momentum beyond short-term market cycles, potentially shifting investor perspectives on tech sector investments [2].

• Opportunities
  : The convergence of AI and cybersecurity may drive growth for leading AI-native defense providers like CrowdStrike and Palo Alto Networks. Ives’ positive outlook could boost investor sentiment toward these stocks [2][3].
• Risks
  : Persistent “AI bubble” discourse may create short-term volatility in tech stocks. Additionally, regulatory changes addressing AI-driven cyber risks could impact sector dynamics [2].

• Dan Ives, Wedbush Securities analyst, spoke on CNBC’s Closing Bell (December 19, 2025) to outline 2026 tech sector trends [1].
• 2026 is predicted to be an AI inflection point focused on software and cybersecurity [1].
• CrowdStrike (41% YTD 2025) and Palo Alto Networks (2% YTD 2025) are highlighted as top cybersecurity picks [2][3].
• AI is both a cyber threat and defense enabler, driving increased investment in AI-native cybersecurity solutions [4].