What is the impact of AI on the software sector?

AI has sparked fears of replacing many software solutions, leading to a sharp decline in SaaS stocks.

Are there other software stocks safe from AI?

Yes, analyses suggest other cybersecurity companies may also be relatively safe.

2 Software Stocks Likely Safe from AI Disruption

Amid fears of AI disrupting the software industry, a report from 24/7 Wall St. identifies two stocks, including Palo Alto Networks (PANW), that are likely safer due to their essential nature and competitive moats.

June 30, 2026

2 min read

Source: 24/7 Wall St.

In the midst of what some call a "SaaS-pocalypse" sparked by AI disruption fears, certain software stocks remain defensively positioned. According to a report by 24/7 Wall St., Palo Alto Networks (PANW) and another cybersecurity firm are among the least likely to be replaced by AI.

Why These Stocks Are Relatively Safe

Analysts believe cybersecurity companies like Palo Alto Networks have a deep competitive moat due to the complexity of their products and the urgent need for data protection. AI may enhance security but won't eliminate the need for integrated solutions.

Stock Performance and Context

PANW's stock has declined with the broader sector earlier this year but has shown more resilience than the average SaaS stock. Analysts note that demand for cybersecurity is not slowing but rather increasing with evolving threats.

What This Means for Investors

While some software companies face headwinds, cybersecurity firms like Palo Alto Networks remain a safer bet for investors seeking refuge from AI disruption.

Frequently Asked Questions

Because it operates in the essential cybersecurity sector, where its complex solutions are hard to replace by AI, and demand is growing.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.