Investors recognized artificial intelligence's (AI) potential to transform industries, supercharging many tech stocks in recent years. That enthusiasm shifted to alarm in 2026. AI's transformational potential includes agentic AI that can independently execute tasks previously handled by software-as-a-service (SaaS) companies, leading to a massive sell-off in SaaS stocks. This "SaaSpocalypse" extended to the cybersecurity sector after AI giant Anthropic released artificial intelligence capable of identifying security vulnerabilities in software. While Wall Street believes AI threatens cybersecurity companies, the reality is not so simple. Moreover, the current sell-off offers long-term investors an opportunity to buy cybersecurity stocks at substantial discounts. Why AI cannot replace cybersecurity companies First, let's address Wall Street's AI fears. Although artificial intelligence is a potent technology, it's not a blanket replacement for cybersecurity, which has become critical to functioning in today's digital age. Organizations are unlikely to dump existing solutions for unproven AI alternatives from the likes of Anthropic. In addition, AI alone isn't a panacea against criminal hackers, who are launching increasingly sophisticated attacks such as data poisoning. This is where the AI that depends on the data to do its job is corrupted, creating vulnerabilities for hackers to exploit. Consequently, the multi-pronged protection provided by cybersecurity companies is essential. Also, they can address situations AI cannot solve, such as strategic decision-making and weighing ethical considerations. Cybersecurity stocks to consider buying The SaaSpocalypse caused many cybersecurity stocks to appear oversold. Some successful companies in the sector to invest in include identity security expert Okta (OKTA 1.97%), data protection provider Rubrik (RBRK 1.19%), and Palo Alto Networks (PANW 0.51%), one of the select businesses given exclusive access to Anthropic's latest AI, deemed too great a cybersecurity threat to release to the public. NASDAQ: PANW Key Data Points Each of these businesses saw substantial share price declines of