Zscaler Shares Rise 2.78% Amid AI Security Expansion Volume Falls to 350th in U.S. Rankings

Market Snapshot

On November 10, 2025, Zscaler (ZS) closed with a 2.78% gain, marking a positive performance despite a 29.48% decline in its daily trading volume to $0.34 billion. This volume ranked ZS 350th among U.S.-listed stocks for the day, indicating reduced liquidity compared to peers. While the stock’s price appreciated, the sharp drop in trading volume suggests diminished short-term investor activity, potentially reflecting a consolidation phase or a shift in market focus following the company’s strategic announcement earlier in the week.

Key Drivers

Zscaler’s recent acquisition of SPLX, an AI security specialist, has positioned the company at the forefront of a rapidly expanding market. The integration of SPLX’s technology into Zscaler’s Zero Trust Exchange platform introduces capabilities to secure AI systems across their entire lifecycle, from development to deployment. This move directly addresses growing concerns among enterprises about vulnerabilities in AI infrastructure, particularly as large-scale models and autonomous agents become more prevalent. The acquisition adds tools for AI asset discovery, automated red teaming, and governance, aligning with Zscaler’s stated strategy to address “emerging risks in AI adoption.”

The news arrives amid a projected surge in AI infrastructure spending, expected to exceed $250 billion by year-end. Analysts have highlighted the expanding attack surface created by hybrid environments, large language models, and retrieval-augmented generation (RAG) systems. Zscaler’s integration of SPLX’s red-teaming and threat-inspection tools allows customers to simulate domain-specific attack scenarios, identifying vulnerabilities before deployment. This proactive approach to security governance positions Zscaler to meet urgent demand for solutions that automate risk assessment and enforce consistent guardrails across both public and private AI deployments.

The acquisition also strengthens Zscaler’s competitive positioning in a fragmented AI security market. By embedding SPLX’s capabilities into its AI Runtime Guardrails and Governance suite, the company extends protection to development environments and runtime operations. This expansion enables customers to apply unified security policies across AI assets and data pipelines, addressing compliance challenges and mitigating risks such as model manipulation. The integration is particularly timely, as enterprises increasingly seek integrated platforms to protect sensitive data and ensure regulatory adherence in complex, hybrid AI ecosystems.

Zscaler CEO Jay Chaudhry emphasized the strategic importance of the deal, stating that securing AI’s full potential requires a unified platform. The acquisition aligns with the broader industry trend of consolidating security functions to match the speed of AI innovation. SPLX’s co-founder, Kristian Kamber, noted the shared vision between the two companies, underscoring the potential to “secure AI innovation at the speed organisations are adopting it.” This partnership not only enhances Zscaler’s product offerings but also reinforces its reputation as a trusted platform in an era of rapid technological transformation.

The market’s muted volume response on November 10 may reflect investor caution ahead of broader industry adoption metrics or regulatory developments. However, the 2.78% price gain suggests that the acquisition’s strategic value is being recognized, particularly as enterprises prioritize security in their AI investments. With AI infrastructure projected to dominate growth narratives in the coming years, Zscaler’s ability to integrate SPLX’s tools into a cohesive, scalable solution will likely determine its long-term success in this high-stakes sector.