AI Fails to Kill Software Industry as Cybersecurity Giant Hits Record High

Investors once feared that generative AI’s ability to write code automatically could wipe out the software industry, triggering a selloff in related stocks. Instead, wider AI adoption has increased cybersecurity threats facing businesses. Research indicates that about 45% of AI-generated code contains security vulnerabilities, with an error rate 1.7 times that of human-written code. Cybersecurity defenses and compliance frameworks have consequently become indispensable “complementary assets” for companies in the AI era, driving demand for security products even higher.

According to a Business Weekly report published on July 16, 2026, cybersecurity giant Palo Alto Networks partnered with Anthropic to embed AI in its defense architecture. Amid surging cybersecurity demand, the company’s shares reached a record high of $368.80 in mid-July 2026. Tigress Financial also raised its price target to $430.