DRAM Pricing Pressures Firewall Buildouts, Fortinet and Others Face Headwinds
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy CHKP?
Source: seekingalpha
- Rising DRAM Prices: Analysts noted that DRAM prices have surged by 60%-70% recently, which will lead companies like Fortinet, Check Point, and Palo Alto Networks to face higher material costs in building next-generation firewall systems, potentially impacting their margins.
- Budget Utilization Trends: Despite only 14% of budgets remaining at the end of Q3, cyber spending saw a slight deceleration in the December quarter, with budget growth slowing from 108.5% to 101%, indicating a cautious approach from enterprises amid uncertainties.
- Extended Sales Cycles: Sales cycles unexpectedly extended to 98 days, an increase of 10 days from the previous quarter, as more companies pushed deals to future quarters due to market factors, reflecting the challenges and uncertainties faced by the industry.
- 2026 Goal Increases: Analysts mentioned that security vendors have raised their sales targets for 2026 to a year-over-year growth of 25%-30%, indicating strong market expectations for future demand, despite current pressures from rising DRAM prices.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CHKP?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CHKP
Wall Street analysts forecast CHKP stock price to rise
26 Analyst Rating
10 Buy
16 Hold
0 Sell
Moderate Buy
Current: 155.780
Low
195.00
Averages
227.67
High
285.00
Current: 155.780
Low
195.00
Averages
227.67
High
285.00
About CHKP
Check Point Software Technologies Ltd is an Israel-based company primarily engaged in the cybersecurity industry. The Company focuses on providing AI-powered, cloud-delivered security solutions to protect corporate enterprises and governments worldwide. Their key product is the Check Point Infinity Architecture, which is a comprehensive cybersecurity platform. The Platform aims to defend against fifth-generation cyber-attacks across various networks, endpoints, cloud environments, workloads, Internet of Things (IoT), and mobile devices. Apart of that, the Company offers a range of products and services designed to secure IT infrastructure. It integrates advanced threat prevention technologies, including firewall, intrusion prevention system (IPS), antivirus, anti-bot, and sandboxing capabilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Optimistic Outlook for Cybersecurity Market Amid Rising Threats
- Surge in Cyber Attacks: CrowdStrike CEO George Kurtz highlighted an extraordinary rise in global cyber terrorism, particularly targeting companies linked to the Iran conflict, compelling businesses to increase security budgets to counter escalating threats.
- Impact of Stryker Incident: Michigan-based medtech company Stryker recently faced a cyberattack linked to Iran, disrupting its daily operations and causing a 3.6% drop in stock price on Wednesday, illustrating the direct impact of cybersecurity incidents on corporate operations and market confidence.
- AI Development Boosts Security Sector: The widespread adoption of artificial intelligence presents new growth opportunities for the cybersecurity industry, as AI tools enhance workflow efficiency but also introduce potential vulnerabilities, with hackers leveraging AI capabilities to become more dangerous, thereby increasing demand for cybersecurity solutions.
- CrowdStrike Stock Recovery: Following a brutal sell-off in mid-February, CrowdStrike's stock has rebounded to approximately $442, although still below its 2026 closing high of nearly $477, reflecting market recognition of its strong earnings report and optimistic growth outlook.
See More
Rapid Growth in Cybersecurity Market Driven by Quantum and AI Solutions
- Market Growth Forecast: The global cybersecurity market is projected to grow from $248.28 billion in 2026 to $699.39 billion by 2034, reflecting a 13.8% CAGR driven by rapid enterprise adoption of post-quantum and AI-powered defense platforms.
- Corporate Expansion Dynamics: Quantum Secure Encryption Corp. reported early-stage revenue growth while expanding from four to thirteen operational markets in early 2026, indicating rapid global development and an increase in channel partnerships, with two additional partners expected to close soon.
- Technological Innovation and Compliance: QSE's Quantum Preparedness Assessment platform now features enhanced automation for analyzing software, cryptographic, and hardware bills of materials, aiding organizations in meeting federal mandates and Gartner's 2026 guidance for comprehensive migration planning.
- Government Procurement Channels: QSE solidified its position within Canadian government procurement ecosystems by joining CADSI and MISA, opening formal pathways into public-sector and defense-related cybersecurity tenders.
See More
Cybersecurity Market Rapid Growth Driven by Quantum and AI Innovations
- Market Growth Forecast: The global cybersecurity market is projected to grow from $248.28 billion in 2026 to $699.39 billion by 2034, reflecting a 13.8% CAGR driven by rapid enterprise adoption of post-quantum and AI-powered defense platforms.
- Corporate Expansion Dynamics: Quantum Secure Encryption Corp. reported significant early-stage revenue generation while expanding from four to thirteen operational markets in early 2026, indicating widespread acceptance and demand for its post-quantum security platform globally.
- Technological Innovation Progress: QSE's Quantum Preparedness Assessment platform now features enhanced automation for analyzing software, cryptographic, and hardware bills of materials, aiding organizations in identifying cryptographic risks in complex environments, aligning with government and industry compliance requirements.
- Government Procurement Participation: QSE solidified its position within Canadian government procurement ecosystems by joining CADSI and MISA, opening formal pathways into public-sector and defense-related cybersecurity tenders, thereby enhancing its market reach and strategic partnerships.
See More
Escalating Cyberattack Threat from Iran Amid U.S. Tensions
- Protests Escalate: Hundreds of Iraqi Shiites protested in Baghdad against U.S. and Israeli strikes on Iran, indicating a rise in regional tensions that could lead to larger conflicts and instability.
- Increased Cyberattack Risk: Cybersecurity experts warn that Iran may launch attacks on U.S. businesses and infrastructure at a high-risk moment, highlighting the rising potential for cyber threats against critical sectors.
- CISA Challenges: The Cybersecurity and Infrastructure Security Agency (CISA) faces significant challenges due to a partial government shutdown and management reshuffle, resulting in staff shortages and resource constraints that may weaken its ability to counteract cyber threats.
- Financial Sector Vigilance: JPMorgan Chase's CEO noted that banks could be targets for cyberattacks, anticipating an increase in global cyber or terrorist threats, which underscores the financial industry's heightened focus on cybersecurity.
See More
Wells Fargo Initiates Coverage on Cybersecurity Stocks
- Coverage Initiation: Wells Fargo has initiated coverage on the cybersecurity sector, assigning Okta an Equal-Weight rating with a price target of $76, indicating a cautiously optimistic outlook on the company's future performance.
- Price Target Assignments: Check Point and Zscaler received Equal-Weight and Overweight ratings, respectively, with price targets set at $165 and $200, reflecting differing market perceptions of growth potential for these companies.
- Other Stock Ratings: Fortinet was rated Underweight with a price target of $64, while CrowdStrike and Palo Alto Networks were rated Overweight with targets of $450 and $200, respectively, showcasing strong investor confidence in these firms.
- Market Outlook: Zscaler aims for $3.745 billion in annual recurring revenue by 2026, highlighting its rapid growth potential in AI security and Zero Trust adoption, which further attracts investor interest.
See More
Iran Faces Severe Internet Blackout Amid Conflict
- Current Internet Blackout: Iran is experiencing a near-total internet blackout lasting over 48 hours amid ongoing conflict with the U.S. and Israel, with connectivity at just 1% of normal levels, severely impacting over 90 million citizens and highlighting the government's strict control over information flow.
- Historical Context: NetBlocks attributes this blackout to a 'regime-imposed' nationwide shutdown, reminiscent of a similar incident in January that lasted weeks and obscured severe human rights violations, indicating the government's tendency to employ such tactics during public protests to maintain control.
- Cyber Attack Threats: U.S. and Israeli cyberattacks have targeted Iranian internet infrastructure, with multiple government-aligned news websites hacked, and even the popular religious calendar app BadeSaba, with over 5 million downloads, compromised, indicating a psychological warfare strategy against the populace.
- Potential Cyber Retaliation: As Iran retaliates with strikes against U.S. and allied targets, analysts warn that Iranian-aligned groups may initiate cyber attacks, with CrowdStrike's head noting observed activities consistent with Iranian threat actors, suggesting that more aggressive cyber operations may be forthcoming.
See More
Optimistic Outlook for Cybersecurity Market Amid Rising Threats
- Surge in Cyber Attacks: CrowdStrike CEO George Kurtz highlighted an extraordinary rise in global cyber terrorism, particularly targeting companies linked to the Iran conflict, compelling businesses to increase security budgets to counter escalating threats.
- Impact of Stryker Incident: Michigan-based medtech company Stryker recently faced a cyberattack linked to Iran, disrupting its daily operations and causing a 3.6% drop in stock price on Wednesday, illustrating the direct impact of cybersecurity incidents on corporate operations and market confidence.
- AI Development Boosts Security Sector: The widespread adoption of artificial intelligence presents new growth opportunities for the cybersecurity industry, as AI tools enhance workflow efficiency but also introduce potential vulnerabilities, with hackers leveraging AI capabilities to become more dangerous, thereby increasing demand for cybersecurity solutions.
- CrowdStrike Stock Recovery: Following a brutal sell-off in mid-February, CrowdStrike's stock has rebounded to approximately $442, although still below its 2026 closing high of nearly $477, reflecting market recognition of its strong earnings report and optimistic growth outlook.
See More
Rapid Growth in Cybersecurity Market Driven by Quantum and AI Solutions
- Market Growth Forecast: The global cybersecurity market is projected to grow from $248.28 billion in 2026 to $699.39 billion by 2034, reflecting a 13.8% CAGR driven by rapid enterprise adoption of post-quantum and AI-powered defense platforms.
- Corporate Expansion Dynamics: Quantum Secure Encryption Corp. reported early-stage revenue growth while expanding from four to thirteen operational markets in early 2026, indicating rapid global development and an increase in channel partnerships, with two additional partners expected to close soon.
- Technological Innovation and Compliance: QSE's Quantum Preparedness Assessment platform now features enhanced automation for analyzing software, cryptographic, and hardware bills of materials, aiding organizations in meeting federal mandates and Gartner's 2026 guidance for comprehensive migration planning.
- Government Procurement Channels: QSE solidified its position within Canadian government procurement ecosystems by joining CADSI and MISA, opening formal pathways into public-sector and defense-related cybersecurity tenders.
See More
Cybersecurity Market Rapid Growth Driven by Quantum and AI Innovations
- Market Growth Forecast: The global cybersecurity market is projected to grow from $248.28 billion in 2026 to $699.39 billion by 2034, reflecting a 13.8% CAGR driven by rapid enterprise adoption of post-quantum and AI-powered defense platforms.
- Corporate Expansion Dynamics: Quantum Secure Encryption Corp. reported significant early-stage revenue generation while expanding from four to thirteen operational markets in early 2026, indicating widespread acceptance and demand for its post-quantum security platform globally.
- Technological Innovation Progress: QSE's Quantum Preparedness Assessment platform now features enhanced automation for analyzing software, cryptographic, and hardware bills of materials, aiding organizations in identifying cryptographic risks in complex environments, aligning with government and industry compliance requirements.
- Government Procurement Participation: QSE solidified its position within Canadian government procurement ecosystems by joining CADSI and MISA, opening formal pathways into public-sector and defense-related cybersecurity tenders, thereby enhancing its market reach and strategic partnerships.
See More
Escalating Cyberattack Threat from Iran Amid U.S. Tensions
- Protests Escalate: Hundreds of Iraqi Shiites protested in Baghdad against U.S. and Israeli strikes on Iran, indicating a rise in regional tensions that could lead to larger conflicts and instability.
- Increased Cyberattack Risk: Cybersecurity experts warn that Iran may launch attacks on U.S. businesses and infrastructure at a high-risk moment, highlighting the rising potential for cyber threats against critical sectors.
- CISA Challenges: The Cybersecurity and Infrastructure Security Agency (CISA) faces significant challenges due to a partial government shutdown and management reshuffle, resulting in staff shortages and resource constraints that may weaken its ability to counteract cyber threats.
- Financial Sector Vigilance: JPMorgan Chase's CEO noted that banks could be targets for cyberattacks, anticipating an increase in global cyber or terrorist threats, which underscores the financial industry's heightened focus on cybersecurity.
See More
Wells Fargo Initiates Coverage on Cybersecurity Stocks
- Coverage Initiation: Wells Fargo has initiated coverage on the cybersecurity sector, assigning Okta an Equal-Weight rating with a price target of $76, indicating a cautiously optimistic outlook on the company's future performance.
- Price Target Assignments: Check Point and Zscaler received Equal-Weight and Overweight ratings, respectively, with price targets set at $165 and $200, reflecting differing market perceptions of growth potential for these companies.
- Other Stock Ratings: Fortinet was rated Underweight with a price target of $64, while CrowdStrike and Palo Alto Networks were rated Overweight with targets of $450 and $200, respectively, showcasing strong investor confidence in these firms.
- Market Outlook: Zscaler aims for $3.745 billion in annual recurring revenue by 2026, highlighting its rapid growth potential in AI security and Zero Trust adoption, which further attracts investor interest.
See More
Iran Faces Severe Internet Blackout Amid Conflict
- Current Internet Blackout: Iran is experiencing a near-total internet blackout lasting over 48 hours amid ongoing conflict with the U.S. and Israel, with connectivity at just 1% of normal levels, severely impacting over 90 million citizens and highlighting the government's strict control over information flow.
- Historical Context: NetBlocks attributes this blackout to a 'regime-imposed' nationwide shutdown, reminiscent of a similar incident in January that lasted weeks and obscured severe human rights violations, indicating the government's tendency to employ such tactics during public protests to maintain control.
- Cyber Attack Threats: U.S. and Israeli cyberattacks have targeted Iranian internet infrastructure, with multiple government-aligned news websites hacked, and even the popular religious calendar app BadeSaba, with over 5 million downloads, compromised, indicating a psychological warfare strategy against the populace.
- Potential Cyber Retaliation: As Iran retaliates with strikes against U.S. and allied targets, analysts warn that Iranian-aligned groups may initiate cyber attacks, with CrowdStrike's head noting observed activities consistent with Iranian threat actors, suggesting that more aggressive cyber operations may be forthcoming.
See More
