The future of AI is agentic.

This also means a lot more activity behind the scenes. More automated traffic, more API calls, more background processes, more DDoS attacks, more scams, more systems failing, and simply more of everything related to cyber.

One of the sectors that will likely be a huge beneficiary is security or cybersecurity to be precise.

And in that sector Cloudflare $NET is one of the leading companies in this sector. It sits directly at the intersection of edge compute, API security, bot management, and more, which makes it a natural beneficiary of AI agents.

As more AI agents come online, Cloudflare’s ability to inspect and secure requests at the edge becomes even more valuable. This reinforces its position as the default front door for the modern internet. They also allow you too create and orchestrate your agents right in Cloudflare.

And it looks like the selloff in software might be starting to ease, and buyers are stepping back in, at least in selected names.

Keep in mind that earnings are this week so this could be the potential catalyst. Thanks to AI their businesses has started to accelerated significantly over the last two quarters and this trend is likely to continue.

The Setup:

• Agentic AI is taking off

• Software is recovering

• Earnings could the catalyst for a breakout