The tense geopolitical environment, accelerated digitization of the economy and the growing number of connected and smart devices create fertile ground for cybercriminals, leading to a surge in intrusions and attacks.

Against this backdrop, all enterprises and organizations have no choice but to roll out Zero Trust security architectures that combine user identification and access management with device authentication and protection and to massively invest in detection tools and automated response solutions.

AI is also rapidly emerging as a powerful driver for the cybersecurity industry. First, the widespread use of personal data to train AI models, coupled with the rise of adversarial AI threats—where malicious actors attempt to manipulate models used in autonomous driving or facial recognition, for example— requires increased data security.

Second, the integration of Generative AI capabilities into cybersecurity products is expected to materially improve the detection of unusual patterns, enable faster responses to emerging threats and bring major productivity gains to enterprise security teams. As a result, AI should provide a boost to vendors’ pricing power and margins.

Finally, M&A is adding some spice to the investment case. Most cybersecurity firms indeed seek to offer comprehensive platforms covering all security needs and are on the hunt for acquisitions as customer enterprises demand packaged solutions to reduce costs and complexity.

The industry growth outlook as well as its fragmentation are also attracting private equity firms seeking to extract synergies by combining various cybersecurity assets.

INSIGHTS

Cybersecurity: Machine Identity, Or Securing The Rise Of The AI Agents

Machine identity has emerged as a major growth opportunity for the cybersecurity industry lately, specifically for identity & access management specialists. Machine identity refers to a unique digital credential assigned to non-human entities, ensuring secure interactions between machines and allowing only trusted systems to access and exchange information. Historically, this term has included a wide…

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Cybersecurity: Big M&A Is Back

Almost a year after initial discussions, Google is finally acquiring the privately-held cloud cybersecurity company Wiz for a staggering $33 billion, marking the largest deal in the industry to date, surpassing the $28 billion Cisco’s acquisition of Splunk from two years ago. In recent years, Tech giants have been intensifying efforts to strengthen their cybersecurity…

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AI/Cybersecurity: Palantir Sends Positive Vibes About AI Enterprise Adoption And Data Science Software

Palantir, the largest position in both our AI and Cybersecurity portfolios, impressed again last night with revenue growth accelerating for the sixth quarter in a row to 36% (from 30%) and a FY25 revenue growth guidance of 31%, both figures coming 5-10% ahead of expectations. The strong top-line performance sparked another significant margin leverage, with…

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Product Details

NAV & Performance

UBS

ISIN

CH0473585252

Currency

USD

Type

Active Equity

Issuer / Rating

UBS / S&P A+

Inception Date

08.11.2019

Liquidity

Daily