Cybersecurity equities rallied on Tuesday after IBM CEO Arvind Krishna highlighted a surge in customer demand for security solutions during the company's preliminary second-quarter results.
Krishna told CNBC that while some major deals were paused toward the end of the quarter as businesses rethought spending, cyber fears remained a top priority for clients.
The comments provided a timely boost to a sector that has faced scrutiny over whether artificial intelligence optimism can sustain valuations amid broader spending caution.
Shares of CrowdStrike (CRWD.O) and SentinelOne (S.O) led the advance, reflecting investor relief that enterprise security budgets remain resilient despite macroeconomic headwinds.
The rally underscores a shift in market sentiment from pure AI infrastructure plays to the defensive necessity of cybersecurity.
Traders are interpreting Krishna's remarks as validation that security spending is less discretionary than other IT categories, even as companies delay larger, multi-year projects.