Why Zscaler Is Emerging As 'A Larger Winner' In The 'AI Revolution'

Author: Priya Nigam | November 10, 2025 12:06pm

Zscaler Inc.'s (NASDAQ:ZS) "product innovation, AI strategy, and go-to-market engine still have more runway," driven by incremental demand for Zero Trust and AI security from enterprises dealing with soaring AI traffic, according to Wedbush.

The Zscaler Analyst: Analyst Daniel Ives maintained an Outperform rating, while raising the price target from $330 to $350.

The Zscaler Thesis: The company seems poised to disrupt the $100 billion security market, Ives said in the note.

Check out other analyst stock ratings.

Zscaler is emerging as "a larger winner" in cloud security, with the demand for its product portfolio strengthening and the AI opportunity growing, he stated.

The analyst mentioned the key positives as:

• Incremental momentum from the Red Canary acquisition to deliver its AI-powered SOC (security operations center).
• The company is improving its deal pipeline with data privacy "remaining top-of-mind for enterprises."
• Traction in the Z-Flex program continues as it leads to "larger, multi-year deals for both new and existing customers."
• Innovations to the Zscaler Digital Experience (ZDX).
• Acquisition of SPLX, an innovative AI security company.

"We continue to believe ZS is a well-positioned beneficiary of the AI Revolution," he further wrote.

ZS Price Action: Zscaler shares were up 2.14% at $326.87 at the time of publication on Monday. The stock is approaching its 52-week high of $336.99, according to Benzinga Pro data.

Zscaler’s market capitalization of $50.89 billion positions it as a significant player in the information technology sector, particularly within the software industry, where it benefits from increasing demand for cloud security solutions.

The stock’s 52-week range, spanning $164.78 to $336.99, indicates a notable recovery from its low, reflecting strong investor confidence in its growth potential amid a global shift towards digital transformation and cybersecurity.

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Posted In: ZS