Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack

Summary

The AI trade, at least for the time being, has come to an end. Many leaders have officially broken below major support and key moving averages, signaling a change in market momentum. Semiconductors, memory names, neoclouds, photonics, the groups that led the market for most of the year, have sold off hard over the past month. But one corner of technology has barely flinched: cybersecurity. And in a tape like this, that kind of relative strength is exactly what tends to precede leadership changes. The numbers tell the story cleanly. The Amplify Cybersecurity ETF NYSEARCA: HACK is up 15.4% over the past 30 days and hit a fresh 12-month high in early July. Over that same 30-day stretch, the VanEck Semiconductor ETF NASDAQ: SMH fell almost 9%. The gap widens further when measured against their peaks. HACK sits less than 5% below its 52-week high, while SMH trades roughly 17% below its own, and many memory and semiconductor leaders sit 15% to 25% off their recent highs. It is worth noting that Bank of America just called long semiconductors the most crowded trade ever, while cybersecurity stocks actually rose on one of the market's ugliest sessions last week.Get CrowdStrike alerts:Sign Up When money rotates out of a crowded theme, it looks for quality groups with their own demand drivers. Cybersecurity, with rising AI-driven threats and non-discretionary budgets, fits that description well. Three names in particular have been leading the way. CrowdStrike: The Platform Leader Keeps CompoundingCrowdStrike Today$203.08 0.00 (0.00%) As of 07/17/2026 04:00 PM Eastern52-Week Range$85.68▼$217.50Price Target$180.63CrowdStrike NASDAQ: CRWD is up around 75% year to date and trades within striking distance of its 52-week high of $217.50. That momentum and outperformance have been backed by real business progress. The company recently expanded its strategic partnership with Schwarz Digits to deliver sovereign cybersecurity across Europe and agreed to acquire XM Cyber's IP, while Fro...