Bank of America: Rising AI Security Concerns Bolster Cybersecurity Valuations

TechFlow reports, according to TechFlow Research, that a Bank of America research report dated September 18, 2026 highlights cybersecurity ETFs outperforming both the software sector and the S&P 500 over the past month. HACK and CIBR gained 7.3% and 6.4%, respectively, while IGV rose 2.8% and the S&P 500 declined 0.9% during the same period. Bank of America has raised its price targets for CrowdStrike to $260, Okta to $200, and SailPoint to $22, maintaining a Neutral rating on all three equities. Their respective current prices stand at $245.70, $190.02, and $20.19.

Bank of America states that AI security concerns are emerging as a persistent catalyst for the cybersecurity sector, marking a market shift from fears of AI disruption to growing needs around expanded attack surfaces, new identity frameworks, and governance. As identity management remains critical for securing AI agents, leading platform security providers are poised to benefit. The bank advises investors to monitor whether AI security expenditures can exceed current forecasts, noting that this will serve as a crucial indicator of whether the sector's valuation expansion transitions into earnings-driven growth.