Most know I’ve been pounding the table on the semiconductor industry and stocks since day 1 of IEA; and the bet has paid off nicely. Since April 2020, when we started IEA, the semiconductor industry is up 120%. With individual semiconductor stocks like AMD (AMD) up 129% and Nvidia (NVDA) up 224%.
Another industry that should share the top spot on your watchlist is the cybersecurity industry and stocks. We’ve all heard about the recent high profile ransomware attacks on Colonial Pipeline and SolarWinds but these only scratch the surface of the number of hacks that are actually taking place. One not-so-obvious industry being targeted is education. In 2020, ransomware attacks cost the education industry $6.62 billion with payouts to hackers in the range of $1.9 to $3.8 million per attack. Even little ‘ol me was hacked recently. They got me for $126 which is not a big deal but it shows that these hackers will attack anyone or any business at any time.
These are but a few reasons why cybersecurity stocks should sit atop any watchlist. Security has always been important to businesses but with more sophisticated and ever-growing attacks happening companies, and now even individuals, are seeing that cybersecurity is not only important but a necessity that is vital to personal privacy and business success.
So far this year the cybersecurity industry is up 16% but individual stocks are up MUCH more. Zscaler (ZS) is up 42% and Fortinet (FTNT) 115%. Going forward, I anticipate cybersecurity being as embedded in a company’s DNA as it business model. This bodes well for the future of cybersecurity stocks. Below is a link to a good article on this subject:
Clear and present danger: Why business leaders must prioritize cybersecurity >>
If you have any thoughts or questions please post them in the comments below.