Is technology selling overrated? Wedbush thinks so — here are his top picks

TLDR

• Wedbush warns of another turbulent week for markets due to geopolitical tensions and oil prices above $100
• Our top cybersecurity company picks are CrowdStrike, Palo Alto Networks, Zscaler, Check Point Software, and Rubrik.
• Analysts say AI increases demand for cybersecurity tools, not reduces it
• Wedbush describes the broader software sell-off as “exaggerated” and sees buying opportunities
• Microsoft, Salesforce, ServiceNow, and Palantir were flagged as disconnected from long-term AI value

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Wedbush asks investors to look beyond the current market noise and focus on technology stocks that it believes have been unfairly beaten down. The company highlighted cybersecurity as a sector worth closely monitoring at the moment.

Analyst Dan Ives and his team issued a note saying markets face another difficult week. They pointed to the ongoing conflict in the Middle East, Oil prices The price of a barrel exceeded $100, and concerns about the possible blockade of the Strait of Hormuz as major pressure points.

Despite the turmoil, Wedbush asked clients to treat recent price declines as potential buying opportunities, especially in cybersecurity.

Wedbush’s Best Cybersecurity Stock Picks

The company named five stocks as its favorite cybersecurity stocks: Crowd StrikePalo Alto Networks, Zscaler, Check Point Software, and Rubrik.

CrowdStrike Holdings, Inc., CRWD

These companies are not losing ground to artificial intelligence, Wedbush said. In fact, analysts said the opposite is true.

As more companies deploy AI-powered agents and large language models, the need for security tools is growing. This includes uptime monitoring, identity management, zero trust enforcement, and security operations center automation.

AI is becoming the enforcement layer that makes cybersecurity more, not less, important, analysts said.

CrowdStrike shares rose more than 4% on the day the memo was published. Rubrik stock rose about 6%.

Selling software is called overselling

Wedbush also retreated from the widespread sell-off that hit software stocks. The team said that many companies are actively deploying AI across their technology stacks, and this momentum is not showing up in current stock valuations.

Analysts called MicrosoftSalesforce, ServiceNow, and Palantir as names that were sold off heavily due to the long-term monetization potential of AI.

Regarding Palantir specifically, Ives called it one of his technology team’s top picks. He said recent bearish calls, including those from investor Michael Burry, “will be proven conclusively wrong.”

Wedbush also addressed investor concerns about the potential for OpenAI and Anthropic to move into the enterprise software space. Analysts said this concern was exaggerated. After speaking with several CIOs in recent weeks, the team said most AI companies are focused on partnerships and workflow integration, not replacing existing enterprise software vendors.

IT executives have confirmed that AI adoption is accelerating, with enterprise and departmental use cases expected to launch through 2026. The rapid pace of this rollout is what makes cybersecurity stocks particularly attractive right now, Wedbush said.

Palo Alto Networks stock rose about 2.5% and Zscaler stock rose about 2.7% on the day of the memo.