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Wedbush Analyst Bets on Cybersecurity as Tech's Biggest Subsector for 2025
ByAinvest
Tuesday, Jul 15, 2025 9:33 pm ET1min read
Wedbush Securities analyst Daniel Ives predicts cybersecurity will be the "biggest subsector" in tech for 2025, citing strong performance from CrowdStrike, Zscaler, Palo Alto Networks, and Check Point. He believes cloud services will drive demand for cybersecurity, despite recent underperformance from cybersecurity ETFs. Ives also expressed optimism for Palantir and IBM, but warned of potential earnings misses from Cisco and Dell.
Wedbush Securities analyst Daniel Ives has placed his bets on cybersecurity as the "biggest subsector" in the technology sector for 2025. According to Ives, the increasing adoption of cloud services for data storage is driving the demand for robust cybersecurity solutions [1].Ives highlighted that companies like CrowdStrike (CRWD), Zscaler (ZS), Palo Alto Networks (PANW), and Check Point Software Technologies (CHKP) are poised to benefit from this trend. He noted that as more businesses move to the cloud, the need for cybersecurity services will grow significantly, making it one of the top-performing subsectors during the upcoming earnings season [1].
Despite recent near-term underperformance of cybersecurity ETFs, Ives remains bullish on the sector. He attributed the recent performance to market rotation and expects cybersecurity ETFs to be among the best performers in 2025 [1].
Ives also expressed optimism for Palantir Technologies (PLTR), predicting it to become an AI stalwart in the next 12 months. He praised IBM's CEO, Arvind Krishna, for leading a renaissance in AI, and expects cloud computing and AI-driven revenue to be key drivers for IBM's earnings [1].
However, Ives warned of potential earnings misses from networking players like Cisco Systems (CSCO) and legacy players like Dell Technologies (DELL) during the earnings season [1].
Key tech companies, including Taiwan Semiconductor Manufacturing (TSM), Netflix (NFLX), and ASML Holding (ASML), are scheduled to report earnings in the coming weeks. The broader market, as indicated by the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), was lower on Monday, reflecting investor sentiment [1].
References:
[1] https://www.benzinga.com/markets/tech/25/07/46400448/dan-ives-bets-on-cybersecurity-as-biggest-subsector-in-tech-for-2025-expects-strong-q2-earnings-from-crowdstrike-zscaler-palo-alto-check-point
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