Amplify Cybersecurity ETF (HACK) +19% in 30 Days as AI Demand Boosts Sector

Key Takeaways

• The Amplify Cybersecurity ETF (HACK) surged approximately 19% over the past 30 days, driven by accelerating AI-related cybersecurity demand and strong earnings from its largest holdings.
• Over the last quarter, HACK gained roughly 40%, reflecting a powerful sector-wide rerating as enterprise security budgets expanded in response to increasingly sophisticated AI-powered threats.
• Top holdings PANW, CRWD, and FTNT each posted double-digit gains during the period, supported by analyst upgrades and better-than-expected quarterly results.
• Defense contractors General Dynamics and Northrop Grumman, which together represent roughly 9% of the portfolio, contributed additional upside as cyber-warfare spending continued to rise.
• The global cybersecurity market is projected to grow from $454 billion in 2025 to over $1 trillion by 2031, providing a structural tailwind for the fund's concentrated portfolio of 23 holdings.

Understanding the Amplify Cybersecurity ETF (HACK) and Its Portfolio

The Amplify Cybersecurity ETF (HACK) is a passively managed, thematic exchange-traded fund that seeks to track the total return performance of the Nasdaq ISE Cyber Security Select Index. Launched in 2014 as the first cybersecurity ETF, the fund invests at least 80% of its net assets in companies actively involved in providing cybersecurity hardware, software, and services. With approximately $2.7 billion in assets under management (AUM) and an expense ratio of 0.60%, HACK holds a concentrated portfolio of 23 stocks.

The fund's largest holdings include Palo Alto Networks (PANW) at roughly 6.0%, Broadcom (AVGO) at 6.0%, Cisco Systems (CSCO) at 5.4%, CrowdStrike Holdings (CRWD) at 5.4%, and Fortinet (FTNT) at 5.3%. Thematic allocation is dominated by Systems Software at approximately 62%, followed by Internet Services & Infrastructure (13%), Communications Equipment (10%), Aerospace & Defense (9%), and Semiconductors (6%). Notably, HACK includes defense primes such as General Dynamics (GD) and Northrop Grumman (NOC), distinguishing it from other cybersecurity ETFs that focus exclusively on pure-play software vendors. This defense exposure has been a meaningful contributor to recent outperformance.

Recent Price Performance: +19% Over 30 Days and +40% for the Quarter

HACK delivered a gain of approximately 19% over the 30-day period ending in early July 2026, climbing from around $94 to above $111. The advance was not linear; the ETF experienced several sharp upward moves interspersed with brief consolidations, reflecting the high-beta nature of its underlying holdings. Daily trading volume expanded notably during rally days, signaling strong institutional participation.

Over the last quarter, the performance was even more pronounced. According to fund data through June 30, 2026, HACK posted a three-month NAV (net asset value) return of approximately 40%. The quarterly trend was characterized by a powerful recovery from the early-April lows, followed by a sustained uptrend that accelerated in late May and continued through June and into July. This trajectory reflects a market that moved from pricing in AI-disruption risk to embracing AI as a structural demand catalyst for cybersecurity.

Drivers Behind the 30-Day Surge

The primary catalyst behind HACK's 30-day surge was a confluence of strong earnings, analyst upgrades, and a broader re-rating of cybersecurity stocks tied to accelerating AI-driven threat activity. In early June, both Palo Alto Networks and CrowdStrike reported quarterly results that exceeded consensus estimates. Palo Alto Networks delivered fiscal Q3 2026 revenue of $3 billion, up 31% year-over-year, with Next-Generation Security annual recurring revenue (ARR) surging 60% to $8.1 billion. CrowdStrike posted fiscal Q1 2027 revenue of $1.39 billion, up 26%, with net new ARR reaching a record $256 million.

Management commentary from both companies explicitly linked demand acceleration to the rise of frontier AI models capable of autonomously discovering and exploiting software vulnerabilities. This "Mythos moment," as CrowdStrike CEO George Kurtz described it, created urgency among enterprise customers to upgrade their security infrastructure. The narrative shifted from "AI disrupts software" to "AI is additive to cybersecurity," and HACK's portfolio of platform leaders was the primary beneficiary.

Additional momentum came from a series of analyst upgrades. Scotiabank upgraded Okta (OKTA) to Outperform with a $165 price target, framing identity security vendors as core AI beneficiaries. BTIG raised its price target on Palo Alto Networks to $380, naming it a top pick, while Wells Fargo lifted its target to $420. A UBS industry report forecasting the global cybersecurity market would reach $240 billion in 2026, growing 13% year-over-year, further reinforced positive sentiment. HACK's defense-contractor holdings also contributed, as General Dynamics and Northrop Grumman benefited from rising government cyber-warfare budgets.

Broader Drivers of the Quarterly +40% Gain

The approximately 40% quarterly gain reflects a broader sector rotation that began in April 2026. Earlier in the year, cybersecurity stocks sold off sharply during the so-called "SaaSpocalypse," when the release of autonomous AI tools triggered fears that software companies would be disrupted. HACK fell to a year-to-date low near $70 in late February before staging a powerful recovery.

The turning point came as investors began differentiating between software categories vulnerable to AI disruption and those positioned to benefit. Cybersecurity emerged as a clear winner. The same AI capabilities that enable more sophisticated attacks also supercharge defensive platforms, and companies with deep proprietary data networks—such as CrowdStrike's Falcon platform and Palo Alto Networks' integrated security stack—were increasingly viewed as difficult to replicate. Institutional flows followed, with HACK attracting significant net inflows as the quarter progressed. The fund's flatter, adjusted market-cap weighting methodology also meant that mid-cap holdings such as Qualys (QLYS) and Tenable (TENB) contributed meaningfully to returns, rather than performance being dominated solely by the largest positions.

Using AI Tools in Sector Analysis

Identifying ETFs and stocks with strong momentum before they make decisive moves can be challenging. I also checked this using Tickeron’s AI Screener to see how HACK and its holdings compare to others in the industry. This AI-powered discovery platform enables investors to scan thousands of securities using a combination of technical indicators, fundamental metrics, volatility measures, price patterns, industry filters, and AI-generated trading signals. Rather than manually sifting through charts and financial statements, users can set customized criteria to surface securities matching specific performance characteristics, breakout patterns, or sector themes. For investors seeking to identify the next wave of cybersecurity opportunities or monitor evolving market trends, the AI Screener provides an efficient, data-driven starting point.

HACK ETF Outlook: Key Factors to Monitor

Looking ahead, several factors are likely to influence HACK's trajectory. The most important is whether the earnings momentum from its largest holdings can be sustained. Palo Alto Networks guided for fiscal Q4 2026 revenue of $3.345 billion to $3.355 billion, and any deviation from that range could set the tone for the broader cybersecurity group. CrowdStrike's 4-for-1 stock split, effective July 2, may amplify retail investor interest and short-term trading volumes.

On the macroeconomic front, interest rate expectations remain relevant. Cybersecurity stocks, particularly those with premium valuations, are sensitive to shifts in the discount rate applied to future earnings. Any hawkish pivot from the Federal Reserve could pressure the high-multiple names that dominate HACK's portfolio. Conversely, a stable or declining rate environment would support current valuation levels.

The structural demand picture remains favorable. Enterprise cybersecurity budgets are expanding, and the global market is projected to grow at a compound annual growth rate (CAGR) of nearly 15% through 2031. Geopolitical tensions and the proliferation of AI-powered attack vectors are likely to sustain government and corporate spending on digital defense. However, after a nearly 40% quarterly gain and a 19% monthly advance, the fund's holdings trade at elevated multiples that leave limited room for disappointment. Investors should monitor sector breadth, institutional flow data, and upcoming earnings reports from holdings such as Zscaler (ZS) and SentinelOne (S) for signals about whether the rally is broadening or narrowing.

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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