Barclays has identified five software companies positioned to benefit as artificial intelligence reshapes enterprise security and government technology needs, with platform security providers and data protection specialists leading the firm’s rankings.
The investment bank’s analysis focuses on companies that provide critical infrastructure as organizations integrate AI tools into their operations, requiring enhanced security measures and specialized data protection capabilities.
1. Palo Alto Networks (NASDAQ:PANW) - Barclays ranks Palo Alto Networks as its top pick, noting that as enterprises accelerate their transition toward AI tools, networks and workflows will evolve, meaning security will need to follow suit. As AI traffic grows, demand for network security tools could increase.
2. CrowdStrike (NASDAQ:CRWD) - The firm highlights CrowdStrike as another scaled security platform with roots in endpoint protection. Barclays believes the company is on track to become durable, mission-critical infrastructure for securing and enabling global AI adoption.
3. Varonis Systems (NASDAQ:VRNS) - Barclays describes Varonis as the security layer for AI tools. The company is a market leader in data security with dedicated Microsoft 365 Copilot and ChatGPT Enterprise SKUs, directly monetizing growing demand for data security.
4. Cloudflare (NYSE:NET) - The firm characterizes Cloudflare as the control plane for agentic internet. Cloudflare sits in front of more than 20% of the internet, with three segments best positioned to benefit from AI-driven trends like agentic traffic and inference at the edge.
5. Tyler Technologies (NYSE:TYL) - Barclays views Tyler Technologies as a critical tool for local governments with a conservative end-market. The company automates civic services, tax collection, courts, and police dispatch, offering a defensive investment.
