Tag: CIBR

Over at the Pro Portfolio we’ve been long the shares of the First Trust Nasdaq Cybersecurity ETF ($CIBR) since May 2022 when the shares were trading just under $41. Over time, we’ve build up the position size given our thinking that cyberattacks are the dark side of our increasingly connected, digital world and the more connected devices there are, the greater number of attack points for bad actors. 

From the “early days” of AI, our thinking was that AI in the hands of bad actors would accelerate the vector and velocity of cyberattacks, resulting in even greater efforts to protect a company’s or a government’s crown jewels. Headlines and articles in recent weeks clearly support that line of thinking, but today, appearing at the Goldman Sachs Communacopia & Technology conference, Nvidia ($NVDA) CEO Jensen Huang had this to say about cybersecurity:

“A derivative of coding is, of course, bug finding. And a derivative of that which is a very large market is called cybersecurity. And the reason why there’s so much conversation today about cybersecurity is because the industry is getting ready to launch some products. And, what better way to create demand than to create a problem, And so. 

“Who doesn’t want their market to be hysterical about their product and line up around the corner. For it. And so, there are responsible ways of doing it and there’s less attractive ways of doing it. But, there’s, a lot of demand creation about cybersecurity today because new products are about to be launched. And if you can code well, so you must be able to debug well. And, red teaming is finding a bug, blue teaming is patching a bug. And so it’s not a complicated concept.

“But the fact of the matter is cybersecurity will likely be the next major use case of AI. And it’s going to run continuously.” 

In our view, that’s another driver for AI and data center capacity, and it’s likely to be a closer one than autonomous driving, which is expected to be a massive creator and consumer of data. 

Bottom line, we continue to think cybersecurity should be a part of every investor’s portfolio and we prefer the diverse exposure offered by CIBR shares or other cybersecurity ETFs. 

Position: TheStreet Pro Portfolio is long CIBR and NVDA