CrowdStrike Hits Record High After DeepSeek Cyberattack
Key Takeaways
- CrowdStrike (CRWD) shares surged nearly 10% Tuesday, hitting a record intraday high following a cyberattack on Chinese AI startup DeepSeek.
- CloudFlare (NET) jumped 10%, Zscaler (ZS) gained almost 7%, CyberArk (CYBR) rose more than 4%, and Palo Alto Networks (PANW) added over 2% as cybersecurity stocks rallied.
- CrowdStrike’s Falcon platform achieved a perfect score in a real-world ransomware test, boosting investor confidence.
Cyberattack on DeepSeek Lifts Cybersecurity Stocks
Cybersecurity stocks surged Tuesday after DeepSeek, the Chinese AI startup that rattled tech stocks Monday with its low-cost AI model, reported large-scale malicious attacks and temporarily restricted new registrations.Investors reacted positively, driving CrowdStrike shares up nearly 10%, making it the top-performing Nasdaq Composite stock and the second-best performer in the S&P 500. Other cybersecurity firms also benefited, with CloudFlare jumping 10%, Zscaler rising almost 7%, CyberArk climbing over 4%, and Palo Alto Networks gaining more than 2%.
CrowdStrike's Falcon Platform Gets Top Ransomware Rating
Adding to the stock’s momentum, CrowdStrike announced Tuesday that its Falcon cybersecurity platform earned a perfect score in a real-world ransomware test. The platform successfully stopped all known and unknown threats with no false positives, according to SE Labs.Analysts have identified CrowdStrike and Palo Alto Networks as key players in securing AI infrastructure, a growing concern as AI adoption expands.
CrowdStrike shares have climbed about 40% over the past 12 months, reflecting strong investor confidence in the company’s leadership in cybersecurity.