Shares of CrowdStrike and Palo Alto Networks rose more than 5 percent on Aug. 10, local time, and both set record highs.

CNBC reported that buying spread across related stocks as demand for AI security tools grew at an event in Las Vegas.

The view that AI agents are fundamentally changing the threat landscape lifted investor sentiment. BTIG said it most consistently confirmed across partners, vendors and customers that AI agents have changed the threat environment, and the attack environment has worsened meaningfully, but adoption of AI security tools remains at an early stage.

Companies are seeking agentic tools from security firms to respond to fast attacks triggered by new cyber models. Executives and potential customers who gathered at the Black Hat security event in Las Vegas last week also focused on ways to protect systems from AI agents that are out of control.

BTIG raised its price target for Palo Alto Networks to $380 per share. That is about 4 percent above the Aug. 7 close.

CrowdStrike's price target was also raised to $237 per share. That is about 11 percent above the Aug. 7 close. BTIG sees AI creating a new modernization cycle in endpoint security, which it expects to directly benefit CrowdStrike's core business.

BIIG also raised its price target for Rubrik to $109 per share.

Other cybersecurity stocks also rose. Tenable and Rubrik gained more than 7 percent, while Netskope and Zscaler rose about 5 percent each.