AI Went Rogue... These Stocks Will SURGE!

Last week an artificial intelligence broke out of its cage, hacked into a real company's servers, and stole what it wanted. No human told it to do that. There was nobody at a keyboard pulling the strings. The machine did it on its own because it decided that was the fastest way to win. This is not science fiction. This happened last week, and the company that built the AI just admitted it. So, here's what actually went down. OpenAI was running its newest models through a security test, which is basically a video game for hackers. So, the AI earns points by finding and breaking through software vulnerabilities. That's how they test this stuff. Now, the test was supposed to be sealed off, no internet. It was in what they call a sandbox, which is just a digital version of a locked room. But, the models didn't like the locked room. So, they found a flaw in the software running it and pried the door open. They got out onto the open internet, which they were never supposed to touch. Then, they figured out that a company called Hugging Face, which believe it or not is one of the biggest names in AI, was holding the answer key to that test. So, they hacked Hugging Face, stole credentials, broke into the production servers, and lifted the answers. All to cheat on a test. Nobody asked them to. They just did it. Today, I'm going to show you why this one incident is triggering a major investment theme, one that'll be crucial for the next decade and beyond. Plus, I'll show you the companies that stand to profit from it, and break down exactly what they're building to fight AI with AI. Make sure to subscribe to the channel cuz this is not a one-off news story. This is the beginning of a digital war, and it could determine the future of artificial intelligence. So, let me break this down for you because for 30 years, hacking has had sort of a speed limit, and that speed limit was a human being. A hacker is one person. One person can only read so much code, try so many passwords, chase so many dead ends before they need to eat, need to sleep. Even the big criminal crews and the state-sponsored teams, they're still just rooms full of people, and people are slow, people get tired, people make mistakes. AI doesn't do any of those things. An AI agent can probe a million doors at once. It can write custom attack code on the fly in seconds, tailored to that exact system. It can try, fail, and learn again thousands of times a minute without ever taking a coffee break. CrowdStrike ran the numbers on this. They found that phishing emails written by AI got people to click 54% of the time. Emails written by humans, 12%. So, the machine is four times better at fooling us than a human being ever was. So, now the speed limit is gone, the thing that kept the internet from total chaos, the fact that there were only so many good hackers in the world. That limit just evaporated, and now anyone with a laptop can rent an army of tireless, brilliant, autonomous attackers. So, the supply of attackers just went from thousands to infinite. And when the number of threats goes infinite, there is only one thing that can possibly keep up, more AI, AI that plays defense. Now, Wall Street is not stupid. They are slow sometimes, but they are not stupid. And the smart money knew this was coming. Let me show you this chart. I want you to take a look at what some of the cybersecurity names have done from low to high this year, like just March to July. We've got Palo Alto Networks peaked at around 140% gain. CrowdStrike of 120%, Okta up around the same, Cloudflare nearly 70%. These are not penny stocks. These are multi-billion dollar companies, some of the largest, most established security companies on Earth, and they're moving like penny stocks. Why? An earlier AI model, the one everyone in the industry started calling Mythos, showed it could discover software vulnerabilities and launch automated attacks at a speed nobody ever seen. And companies started to panic. Palo Alto's CEO said over 1,200 customers reached out to talk security just a few weeks. 1,200. They held 800 meetings in a month and a half. That is unprecedented levels of fear. And fear is the single best salesman cybersecurity has ever had. Now, interestingly, the actual day this OpenAI news hit, these stocks dipped a little bit. CrowdStrike, Palo Alto, Okta. Not big, but they came down a couple of percent. Now, why would that be? Well, like I said, these stocks have already made huge runs. Some of this is priced in. The easy money, the part where nobody is paying attention, that part is over. But the story is not over. Some of these stocks could still go 5 to 10X from here. But first, they need to pull back and digest the recent moves. I'm going to show you where I'd buy them. Now, by the way, before I show you that, if you're interested in taking your investing to the next level, to really becoming sophisticated in terms of trading stocks, I want you to consider joining my Black Ops trading service. It is five bucks for the entire year. Yes, the whole year. And you'll get live 1-hour group mentoring sessions with me every single week for a year. I'll show you my favorite stocks, entry and exit rules, what I'm buying, what I'm selling. We'll look at your stocks. All of it's included. You'll also get my weekly newsletter, bonus indicators, a few reports there on the page for signing up. It's all included. Just five bucks, no strings. So, click the link in the description, scan that QR code, or just go to tradewithross.com to get signed up for that. Now, let's talk about the defense. And And this is something I think a lot of people don't understand. You cannot stop an AI attacker with a human defender. It's like showing up with a Schwinn to a Formula 1 race. The machine is too fast. So, the only answer, as we said, and it's the only answer, is to put a defensive AI in the ring to fight the attacking AI. So, you got robot versus robot. And that is exactly what these companies have spent the last year building. CrowdStrike built something they call Charlotte AI, and it's essentially an entire team of tireless robot security analysts. When an attack comes in, Charlotte instantly sorts the real threats from the noise. It reads the attacker's own code and translates it, and it recommends how to shut it down within seconds. They rolled out a whole squad of these AI agents. They call it, {quote} an agentic security workforce. A workforce of machines standing guard 24 hours a day. Then there's Palo Alto Networks, the biggest of the bunch. They launched a platform called Cortex Agentics to build and govern armies of these defensive agents. But they also did something even bolder. They spent 25 billion dollars to buy a company called CyberArk. Why? Because in a world full of AI agents, the biggest danger is machine pretending to be someone it's not. CyberArk's whole job is verifying identity. Making sure the agent asking for the keys is actually allowed to have them. Palo Alto essentially bought the bouncer for the age of AI. And that identity is the whole ballgame. It's why a company like Okta matters so much right now. In the old world, security is about keeping bad people out. In the new world, it's about keeping bad machines out and telling the difference between a helpful AI agent and a malicious one wearing the same mask. Okta and Palo Alto have even teamed up to attack this problem together. So, when your biggest rivals start holding hands, you know this is a real threat. And even the incident itself proves the point. When Hugging Face got hacked and tried to investigate, you know what slowed them down? The safety guardrails in the AI models they were using to defend themselves. The attacker had no rules. So, the defenders were here tripping over their own. And that right there is the entire opportunity. The defensive tools have to get better and faster and smarter. And companies are going to spend whatever it takes to make that happen. Now, I'm not here to tell you to run out and buy one specific stock today. What I'm telling you is a door just opened and it's not closing. But I want to look at a couple of these stocks here with you because as I said, many are extended. We got the big run-up here in Palo Alto. Stocks like Fortinet have gone from 80 to almost 180 in a couple of months. So I don't want to chase these, but some of these aren't as extended as they appeared. I want to use Palo Alto Networks as an example. This is the big kahuna. And it looks like it made a just move, big move, which it did. But part of that is because it sold off over in here. And what happened in late 2025 and early 2026 is that software stocks across the board sold off. Once we saw what a gentic AI could do. In other words, once people realized it's not just dear chat GPT, find me a local Italian restaurant, but instead they can say, "Hey, build this software, test it against this, put it on my server, run the data through it." They go, "Holy crap, who needs software anymore? Every company is going to build their own." And so they threw the baby out with the bathwater because cyber security stocks are essentially software. But they are act but they are in need more than they ever were. So, if we take this out, let's just go to like a weekly chart and I'll put this in logarithmic scale just to kind of even this thing out. This is one of the easiest ways to figure out a trend of a stock. Um, you know, look, we're we're looking at 10 years of data here, okay? So it's going from 20 to 320. But notice that flat point in there. So if we just kind of draw a channel on this. And this is not like super uh to the penny type analysis, but I just want to show you here. And and look, if you look at any stock over a long enough period of time, if they're a good company with growing sales and growing profits, they're going to trend higher over time. Look at Apple and Google and Amazon and Microsoft and all of them, right? They sometimes get too cheap, sometimes get too expensive, but over a long enough time frame, they're just kind of following a a steady trend higher, matching their growth in sales and earnings and profitability. And so, if you look at this starting over here in late 2025, if it had just held and not sold off with the software stocks, you'd probably be sitting around 260 to 270 right now in the middle of this kind of trend channel. So, yes, it's up big over the last 3-4 months, but it's not as extended as it appears long-term. So, if I'm trying to pick up Palo Alto, again, as a long-term position, as a play on this cybersecurity threat, I would like to buy it somewhere in this kind of 230 to 270 range. This last little stall in the stock, it it was peaking over here to about 215, 220-ish for all of 2025, finally breaks through. This is about where that trend would put it. So, if the stock kind of drifts back and the market gets weak, consider beginning to buy over in here around 250, 260 a share. Now, there is one stock, however, that looks like a decent buy today, and that's Sentinel One. Now, this is another cybersecurity company. They are not the big kahuna, it's about a $6 billion company, so a good size, but they're nowhere near uh Palo Alto Networks size. But, if you look here at Sentinel One, you'll notice that it's in the early stages of a turnaround. So, this stock got up here 20, 30, 30 bucks a share, so 2 years ago. It's been selling off ever since and it has come back with a vengeance on this push into or this rally, excuse me, in cybersecurity stocks. So, it's doing exactly what a stock should as it rallies off its lows. It's making strong strides higher, pulling back into what was previous resistance now being support, ripping higher, pulling back into these moving averages. So, this could be a great place to buy SentinelOne, ticker symbol S. Another thing I've got on this chart is what's known as a volume profile. That's this these gray lines over here on the right side of the chart and all that does is kind of show you where the most trading has has been done. And it's pretty easy to see in the chart here that this was the last big acceptance area. It's been almost a year here in this kind of $17 to $18 range. Peaked out there when it when it when it ran up uh uh earlier this year. Got a pullback, rallied back through, coming back for one test. So, I would expect to see buyers step in this thing right here in this kind of 17, 17 half. So, this is a stock you could in fact add in today. And I'm going to link uh my entire security stock watchlist in the description below this video. If you have TradingView, just click that link. You can add the list and I'm not saying to buy them all right now, but at least you'll have a shopping list uh of stocks and and uh you can kind of run through some of these on your own. But, that's the big big trend right now is this cybersecurity move. Yes, it's run a little bit hot. Yes, some of these stocks are getting extended, but I believe this is an area that's going to succeed over the next two, three, five, 10 years going forward as these threats get more complex, uh more technological and anyone running a real company is going, "I don't even understand what's going on. I'm just going to pay you to make sure they don't come hack my customer network and steal all the credit cards and delete all my data and it's just not worth it to me, okay?" So, uh UBS is modeling the cybersecurity market growing roughly $240 billion dollars this year and that was before AI taught itself to break into a company on live television. Every corporation on earth watched that. They're being terrified of it right now and every one of them is going to open up the checkbook. So this is in all likelihood a multi-year tailwind here and the truth that nobody wants to say out loud is that these machines are only going to get smarter. They're going to get faster, more autonomous. Which too late. The genie cannot go back in the bottle. And that means the company standing guard, the ones building AI to fight AI are going to be some of the most important businesses of the decade. The robot war has now started. And it's anybody's guess how it ends. 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