Morgan Stanley raised its PANW target to $410 from $394 recently, calling it a key beneficiary of increased cybersecurity spending, according to TheFly.
- BTIG raised its target on Palo Alto stock to $425 from $404 while maintaining a ‘Buy’ rating.
- Nvidia launched an AI agent safety platform with Palo Alto and CrowdStrike among more than 100 participants.
- Anthropic warned in its IPO filing that advanced AI could pose catastrophic or existential risks to humanity, Reuters reported.
Palo Alto Networks Inc. (PANW) shares rose nearly 3% to hit a record high of $399.03 on Wednesday. The gains come as debate around artificial intelligence (AI) safety has intensified.
Cybersecurity companies have increasingly been viewed as beneficiaries of growing security needs as AI creates tools for both defenders and attackers. AI-enabled phishing, deepfakes and other threats have added to demand for cybersecurity infrastructure.
At the time of this writing, other cybersecurity names also traded higher, with CrowdStrike (CRWD), Fortinet (FTNT), Okta (OKTA) and Zscaler (ZS) all in positive territory.
AI Safety Concerns Stay In Focus
Earlier this week, Anthropic, in its initial public offering filing, warned that advanced AI could create “catastrophic or existential risks to humanity.” According to the Reuters report, the company outlined potential behaviors including resisting shutdown and manipulating information.
OpenAI CEO Sam Altman separately said ahead of the company’s Developer Day on Tuesday that they would not pursue an IPO while conditions around AI development and safety remain in flux.
The issue also reached Washington this week, where President Donald Trump and executives from companies including OpenAI, Anthropic, Meta (META), Alphabet (GOOG, GOOGL) and Nvidia (NVDA) signed a voluntary AI-safety accord covering internal monitoring, outside evaluation and governance controls.
Nvidia Launch Adds To Cybersecurity Focus
The sector’s gains also followed Nvidia’s (NVDA) launch of its Open Agent Safety Platform, an open-source framework for securing autonomous AI agents from testing through deployment.
CrowdStrike and Palo Alto are among more than 100 organizations working with Nvidia on the initiative, which CEO Jensen Huang described as an effort to build an open “trust layer” for safe agent systems.
Analysts See Higher Cyber Spending
Morgan Stanley analyst Meta Marshall recently raised Palo Alto price target to $410 from $394 while maintaining an ‘Overweight’ rating, according to TheFly.
The firm described Palo Alto as a key beneficiary of increased cybersecurity spending and said a “steep step up” in security needs could create an opportunity for additional share gains. Morgan Stanley continues to list the stock as a top pick.
BTIG also raised its target on PANW to $425 from $404 while maintaining a ‘Buy’ rating. After meeting with Palo Alto’s investor relations team, the firm cited constructive data points on Chronosphere, Idira, and Prisma AIRS/software firewalls, according to TheFly.
Retail Sentiment Around PANW Stock
Despite the stock’s recent gains, retail investor sentiment around PANW stock remained in ‘bearish’ territory on Stocktwits.
So far this year, PANW stock has surged over 123%. In comparison, the First Trust NASDAQ Cybersecurity ETF (CIBR) and the Vanguard Information Technology ETF (VGT), which hold the stock, have rallied around 46% and 34%, respectively.
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