Top 5 NASDAQ Security Stocks (Updated December 2023)

Year-to-date gain: 186.81 percent; market cap: US$2.81 billion; current share price: US$27.19

CSPi is focused on security and packet capture products, managed IT and professional services and technology solutions. The tech firm has two business divisions: High Performance Product and Technology Solutions. The former includes ARIA Cybersecurity Solutions, which provides software for enhanced network security and incident response capabilities, while the latter offers IT solutions and professional services via partnerships with best-in-class technology providers.

In November, ARIA Cybersecurity Solutions took a big step forward in helping Australia-based clients comply with the country's Critical Infrastructure Risk Management Program, which is aimed at protecting Australia's critical infrastructure from cyberattacks. The company launched its latest solutions product, AZT PROTECT, via a partnership with South Australian company Logi-Tech. AZT PROTECT is "a groundbreaking service for protecting critical applications in operational technology environments such as manufacturing, mining and government," according to a release.

Shares of CSPi reached their 2023 peak on December 1, hitting US$27.94.

Year-to-date gain: 119.54 percent; market cap: US$56.68 billion; current share price: US$236.01

CrowdStrike Holdings is a leader in cloud- and artificial-intelligence-based cybersecurity software. The company uses advanced endpoint detection and response applications and techniques in its machine-learning-powered antivirus protection offerings to ensure breaches are stopped before they occur. Recently, CrowdStrike's Counter Adversary Operations "uncovered a spate of cyberattacks by Imperial Kitten targeting Israeli organizations, particularly in the transportation, logistics and technology sectors," reported Forbes.

In the third quarter of its 2024 fiscal year, Crowdstrike’s revenue figures beat analyst expectations, growing by 35 percent year-on-year to reach US$786 million; adjusted earnings per share came in at US$0.82. Company shares climbed steadily through much of 2023, peaking at US$238.48 on November 30.

Year-to-date gain: 109.3 percent; market cap: US$93.26 billion; current share price: US$295.79

Global cybersecurity leader Palo Alto Networks’ security portfolio includes advanced firewalls and cloud-based offerings that protect more than 85,000 organizations across their clouds, networks and mobile devices.

In November, the company launched Strata Cloud Manager, which it calls “the industry's first AI-powered Zero Trust management and operations solution." It also revealed a suite of advanced security capabilities and five next-generation firewalls.

“Strata Cloud Manager will simplify management and operations across our customers' entire network security estate,” said Anand Oswal, senior vice president and general manager of network security at Palo Alto. “We continue to innovate with AI and ML in our security services, now stopping advanced attacks, including the first and only instance of a unique attack.”

Palo Alto’s share price has more than doubled in 2023, reaching its highest point of US$296.84 on December 1.

Year-to-date gain: 88.81 percent; market cap: US$7.34 billion; current share price: US$68.31

An industry leader in semiconductor chips and silicon intellectual property, Rambus enables critical performance improvements for data centers and other growing markets that require secure data protection. According to the company, its solutions "improve data bandwidth, capacity and security from cloud to consumer."

Rambus creates additional revenue streams by licensing its silicon intellectual property (its proprietary building blocks for semiconductor chip technology) to its partners. In the third quarter, the company generated US$57.9 million in licensing billing, US$28.9 million in royalties and US$52.2 million in product sales, driven mainly by memory interface chips.

The company's share price rose to its highest point in 2023 on November 29, hitting US$70.72.

Year-to-date gain: 72.99 percent; market cap: US$29.44 billion; current share price: US$198.45

Award-winning cloud security company Zscaler is a leader in the field of security service edge, and its Zero Trust Exchange is one of the world's most-used security service edge platforms. The platform can be used to secure user-to-app, app-to-app and machine-to-machine communications over any network.

In November, the company announced Zero Trust Exchange platform advancements that are aimed at simplifying and improving cloud workload security to deliver consistent cyber defense. “As customers accelerate the adoption of public cloud infrastructure they require a simple and effective cloud security platform to protect their cloud workloads and applications,” said Zscaler Senior Vice President and General Manager Dhawal Sharma.

Zscaler climbed steadily after reaching a year-to-date low of US$84.93 in May to peak at US$207.78 on November 29.