Software stocks have been under pressure lately, and the bearish narrative has been loud. Concerns are rising sharply that artificial intelligence (AI) is disrupting the software-as-a-service (SaaS) industry, leaving even legacy players in the space vulnerable.

But in a recent educational video, Bartchart’s Senior Market Strategist John Rowland, CMT, highlighted an interesting development within our Cybersecurity Stocks watchlist:

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While much of the software group is flashing red, four cybersecurity names are currently showing Buy signals, based on the Barchart Opinion indicator.

That bullish divergence is worth following up on.

The broader software selloff has been driven by fears that AI agents will replace traditional SaaS tools.

But cybersecurity stands out as a relatively “safe” niche within software. In fact, if anything, the wider use of AI has only increased the market:

Autonomous AI agents require identity controls

API traffic is exploding

Edge-based inference creates new security vulnerabilities

Bot traffic now dominates web infrastructure

In other words, security spending isn’t shrinking; it’s becoming more critical for enterprises. That’s why cybersecurity may represent one of the few software sub-sectors where AI is a tailwind, and not a headwind.

When John sorted the Cybersecurity watchlist by Barchart Opinion, four names stood out with active Buy ratings:

Akamai Technologies (AKAM)

Fastly (FSLY)

A10 Networks (ATEN)

Cisco Systems (CSCO)

These weren’t just mild Buy signals.

In the case of Akamai:

100% Short-Term Buy

100% Medium-Term Buy

Top 1% strength ranking

Momentum indicators strengthening across the board

That’s not random; that’s structured momentum.

However, the Barchart Opinion page also warned that a trend reversal was possible on AKAM, with RSI approaching overbought territory. From John’s perspective, he clarified that this more often signals a potential correction, as opposed to a full-blown trend reversal.

Akamai has been evolving from a traditional CDN provider into a security-first edge infrastructure platform.

Recent updates show:

Strong growth in API security

Continued expansion of edge computing services

Enterprise migration toward distributed AI processing

As AI inference moves to the edge, traffic filtering and protection become more critical — not less.

Technically, AKAM is showing strong trend continuation characteristics. The stock hit the End-of-the-Road screener after earnings this morning, but didn't fall far enough to test its 50-day moving average – which John says could mark that expected correction in the shares, and an opportunity to buy the dip.

As of right now, AKAM, still sports a solid Buy rating on the Barchart Opinion, while its RSI has retreated from overbought territory.

Fastly has benefited from:

Rising edge traffic

Increasing demand for secure content delivery

Growth in “agentic AI” web traffic filtering

With bot traffic now representing a significant portion of internet traffic, edge-layer security becomes mission-critical. Momentum has pushed FSLY into multi-year strength territory — another confirmation via Barchart Opinion.

A10 Networks represents a valuation-conscious security infrastructure play, benefiting from:

Enterprise firewall demand

Network reshoring

High-margin hardware/software hybrid model

Legacy player Cisco Systems brings scale and diversification.

Despite margin pressures from AI infrastructure integration, Cisco remains a foundational security provider — especially post-Splunk integration — and continues to screen positively on technical alignment.

AI may disrupt SaaS tools, but AI won’t eliminate the need for cybersecurity. In fact, it’s more likely to amplify and broaden the market for online security.

As the market rotates away from speculative software narratives, cybersecurity represents:

A structurally necessary service

A technically strengthening sub-sector

A trading opportunity inside broader tech weakness

And the Barchart Opinion tool is identifying that strength early.

Watch the clip to see how John finds opportunity in software stocks:

Stream the full webinar to learn more

Turn on notifications for the next live educational session

On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com