This 'Spicy' AI Evolution Could Boost a Beaten-Down Sector
It's not all smooth sailing for the Internet's favorite new AI product...
Until recently, you might have found a strange disclaimer on the support page for chatbot-like program OpenClaw:
Running an AI agent with shell access on your machine is... spicy. There is no 'perfectly secure' setup.
Earlier this month, I wrote about how OpenClaw will reshape the future of AI.
In case you missed it, OpenClaw functions similarly to OpenAI's ChatGPT or Alphabet's Gemini.
Like these AI models, OpenClaw completes tasks based on natural-language user prompts. But a few features set OpenClaw apart.
First, it runs locally on a device in your home – not on a server in a data center somewhere.
Second, it can tie into apps like Messenger and WhatsApp, allowing users to assign tasks to their home AI agent on the go.
In fact, OpenClaw integrates with literally any app you throw at it. That's because of the third and most important thing that sets this AI apart...
OpenClaw can read and write files deep within your computer. In other words, it has what's known as "shell access"... allowing it to make changes to your operating system itself.
The new AI agent has taken the Internet by storm, becoming one of the fastest-growing open-source projects in history. And now that OpenAI has hired OpenClaw creator Peter Steinberger, we can expect to see shell-access AI grow more widespread.
Here's why that matters for us as investors...
While the viral quote about this "spicy" setup and its security issues has been removed from OpenClaw's documentation, the fact remains that this program brings a ton of new risks to the AI landscape.
And as I'll explain, that's a big tailwind for one beaten-down sector.
Cybersecurity Stocks Are Trading for a Discount
As AI becomes widespread, it threatens system security from two sides...
First, it gives hackers new deepfake tools and social-engineering techniques to worm their way into security layers.
Second, it exposes companies to unpredictable new risks from their own AI tools.
A stark example of this came in 2023, when a user talked a car dealership's chatbot into selling him a new Chevy Tahoe for $1. Take a look...
AI models are smarter than they were in 2023. But they're still vulnerable to errors, hallucinations, bias, toxic data, and malicious prompting.
This double bind means fraud will continue to soar, even as AI technology advances. And agents with shell access open the door to hacks of more sensitive data than ever before.
Anything these agents have access to could be compromised in an attack. Think your personal and work e-mails, messaging apps, smart-home devices, and more.
This is a powerful tailwind for cybersecurity companies. As AI threats escalate, we'll need more powerful security technology.
But today, these security-software stocks are crashing...
We can see it using the First Trust Nasdaq Cybersecurity Fund (CIBR). This fund contains a broad basket of cybersecurity companies.
CIBR has struggled in recent months, falling 16% since its October 2025 peak. Take a look...
That's a significant dip. And I wouldn't advise you to try and catch this falling knife.
But in the long term, cybersecurity stocks deserve your attention. These companies are selling off despite the growing tailwinds for their business.
Something isn't adding up... And DailyWealth readers know these setups are where the market's best value lies.
It's possible we're seeing a one-time discount for cybersecurity companies before AI makes them essential.
Don't miss this opportunity. Add cybersecurity stocks to your watch list today.
Good investing,
Sean Michael Cummings
Further Reading
"If cybercrime were a standalone country, it would be the third-largest economy in the world," Joe Austin writes. AI-powered cyberattacks are a big business. And that spells opportunity for the companies behind today's cybersecurity solutions.
The software industry's recent crash has been all over the news. But that doesn't mean all these stocks are losers... There are some high-quality stocks hidden among this group. And this sell-off is a great time to profit from these "diamonds in the rough."
Market Notes
HIGHS AND LOWS
NEW HIGHS OF NOTE LAST WEEK
Applied Materials (AMAT)... semiconductors
Ciena (CIEN)... telecom equipment
New York Times (NYT)... media
Ralph Lauren (RL)... apparel
Ross Stores (ROST)... discount retail
Five Below (FIVE)... discount retail
Becton Dickinson (BDX)... needles and syringes
Parker-Hannifin (PH)... motion and control technologies
Johnson Controls (JCI)... industrial equipment
Clean Harbors (CLH)... industrial waste disposal
Linde (LIN)... chemicals
MasTec (MTZ)... infrastructure and engineering
CenterPoint Energy (CNP)... utilities
Halliburton (HAL)... oil services
Agnico Eagle Mines (AEM)... gold
Alamos Gold (AGI)... gold
NEW LOWS OF NOTE LAST WEEK
Paychex (PAYX)... payroll solutions
HP (HPQ)... digital utilities
Atlassian (TEAM)... collaboration software
Copart (CPRT)... "junkyard giant"
Booz Allen Hamilton (BAH)... defense contractor