What is Anthropic's new AI tool, Claude Code Security, that wiped off billions from cybersecurity stocks in one night
Times of India
by TOI TECH DESKFebruary 22, 2026
AI-Generated Deep Dive Summary
Anthropic's new AI-powered tool, Claude Code Security, has made waves in the cybersecurity world by scanning codebases for vulnerabilities more effectively than traditional scanners. Unlike existing tools that rely on pattern matching, Claude Code Security uses human-like reasoning to identify complex flaws, leading to a sharp decline in cybersecurity stocks within hours of its announcement. Companies like CrowdStrike, Okta, and Zscaler saw significant drops, with some losing over 9% in value. This reaction highlights investor concerns about AI potentially disrupting legacy software solutions.
Claude Code Security operates differently by analyzing how data flows through applications and identifying subtle issues that other tools often miss. It leverages Anthropic's advanced model, Claude Opus 4.6, which has already detected over 500 vulnerabilities in open-source code. The tool verifies its findings rigorously before flagging them, ensuring accuracy and requiring human oversight for any patch application.
The market's sharp response underscores broader investor anxiety about AI-driven disruption in the tech sector. This sentiment has contributed to a significant decline in software stocks this year, with some indices down over 20%. While Claude Code Security is currently a research preview available only to enterprise and open-source users, its potential to transform cybersecurity practices is undeniable.
Experts suggest that while AI tools like Claude Code Security could ultimately benefit the cybersecurity industry by enhancing vulnerability detection, short-term disruptions are likely. For now, the focus remains on how this innovation will reshape the sector and whether it will lead to long-term improvements or continued market volatility. Investors and tech enthusiasts alike are closely watching this unfolding story, as it has significant implications for global technology trends and cybersecurity strategies.
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Originally published on Times of India on 2/22/2026