Peter Andersen believes the AI trade offers headwinds, but also opportunities for companies across Wall Street. One corner of the market he sees with the biggest upside: cybersecurity. He names Palo Alto Networks (PANW) in particular as a leader in the space. When it comes to adding guardrails to AI, Peter does not believe AI is at the level of human thinking, disregarding immediate attention. However, he warns of necessity down the road. Outside of Palo Alto, Peter names United Rentals (URI) and Infleqtion (INFQ).

Peter Andersen Sees PANW Buy Opportunity, Talks Needs for AI Guardrails

Schwab Network

[SPEAKER_01] With a growing pushback against Jada centers and fears around AI, how can investors exploit the panic? For more, we want to welcome Peter Andersen, CFA and Chief Investment Officer, founder, Andersen Capital Management. Peter, it's good to see you in person this morning.

[SPEAKER_00] Same here.

[SPEAKER_01] Happy Friday to you. We made it.

[SPEAKER_00] Yes, we did.

[SPEAKER_01] All right. So you say the AI apocalypse is the latest technological panic. So it sounds like you're saying everybody stop screaming chicken little. How can investors take advantage of this?

[SPEAKER_00] Well, first off, about that, you know, when we hear something like there's a 10 percent chance of AI going off the rails, and that's a very popular number that's been around, you have to ask, what is the data behind that? Has there been an actual calculation showing a 10 percent? I mean, it sounds quantitative, but just because it's a number doesn't mean it's a scientific conclusion. So I think there's a lot of wiggle room in that 10 percent calculation. That's the first thing.

[SPEAKER_00] But in terms of taking advantage of cybersecurity, well, AI, I think cybersecurity is the better way to play. Why is that? Because as AI gets more advanced, the bad actors are going to use AI to enhance their cyber capabilities, their hacking capabilities.

[SPEAKER_01] Speaking of that, you like Palo Alto Networks. That's had a strong run year to date up more than 100 percent, almost double from a year ago. Yes. Why do you see that as an I'm assuming you see that as an opportunity from here? Why do you see that?

Peter Andersen Sees PANW Buy Opportunity, Talks Needs for AI Guardrails

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Peter Andersen Sees PANW Buy Opportunity, Talks Needs for AI Guardrails

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.