Are These Two Stocks Your Ticket to the AI Trade?

• Winthrop Capital’s Adam Coons sees the cybersecurity sector as an opportunity to invest in AI without falling into the FOMO trade, emphasizing the sector’s predictable growth.
• He points out that regardless of AI’s direction, the demand for advanced cybersecurity solutions will increase, making it a stable investment theme.
• Coons recommends investing in Fortinet (FTNT) and CrowdStrike (CRWD), acknowledging their high valuations but advocating for a balanced investment approach through appropriate position sizing.

Winthrop Capital’s chief investment officer, Adam Coons, appeared on Yahoo Finance to share insights on investment opportunities, pinpointing the cybersecurity sector as a strategic way to engage with artificial intelligence (AI) without succumbing to overhyped trends. Coons emphasized that while the AI narrative has become somewhat overblown, there are still viable investment avenues within the broader AI ecosystem. He specifically highlighted cybersecurity as a sector poised for growth, driven by an undeniable need for enhanced security measures regardless of AI’s developmental trajectory.

Coons argued that the direction of AI, whether influenced by next-generation technologies or GPU advancements, is challenging to predict, but the increasing demand for advanced cybersecurity solutions remains a constant. He identified Fortinet Inc. (FTNT) and CrowdStrike Holdings Inc. (CRWD) as top investment picks within this space, acknowledging that their valuations are somewhat elevated but suggesting that a basket approach with appropriate position sizing could mitigate risks. This strategy, he noted, allows investors to tap into a growing market with more predictable outcomes compared to other AI-related components.

The appeal of cybersecurity, according to Coons, lies in its essential role and expanding market size in 2025, offering a stable investment theme amid the uncertainties of AI’s evolution. By focusing on leading companies like Fortinet and CrowdStrike, Coons believes investors can participate in the AI-driven technological shift while avoiding the frenzy of less predictable AI trades, providing a balanced and strategic entry point into a critical and expanding sector.

Price Action: CRWD is trading 0.83% higher at $435.21, while FTNT is down 0.99% at $107.26 at press time.

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