5 Takeover Targets for the AI Revolution

In the 2010s, getting acquired was the ultimate startup status symbol. Waze … Nest … DeepMind … Fitbit … One by one, the most promising companies in tech got swallowed by giants like Alphabet Inc. (GOOGL) and Meta Platforms Inc. (META), turning their founders and early employees into multimillionaires.

America’s top five tech firms made at least 616 purchases between $1 million and $50 million alone that decade, according to the Federal Trade Commission. Hundreds more happened outside that narrow window. M&A exits became such a fixture that HBO built a TV series around it. The hit show Silicon Valley followed a founder who kept refusing, fumbling, and blowing up opportunities to cash out because he wanted to build something bigger.

The AI Revolution is now creating a new wave of M&A exits. Only this time, many of the acquisition targets are publicly traded companies that regular investors can buy first, rather than sending in a job application and hoping to be employee No. 3 at a company like DeepMind. Many of these are happening at wonderful premiums. When RadNet Inc. (RDNT) bought AI cancer-detection company iCAD in July 2025, shareholders pocketed a roughly 100% premium overnight. Adobe Inc.’s (ADBE) purchase of AI-powered digital marketing firm Semrush happened at a 78% markup. Even the “disappointing” deals are closing at 20% premiums – an instant gain that usually takes the S&P 500 two years to grind out.

Now, InvestorPlace Senior Analyst Luke Lango believes he’s found a way to get into these AI investments even earlier, with potentially even bigger payouts. And in a new free presentation, the 2026 Megadeal Event, he lays out his step-by-step method for spotting these targets, and how to buy these firms before everyone else gets in. The presentation airs on July 30 at 1 p.m. Eastern, and you can sign up for it here.

To show you why the timing matters, I’ll walk you through five companies that look ripe to be bought. AI is redefining tech, and cash-rich incumbents are about to spend enormous sums to stay relevant.

Cybersecurity: Where Buyers Are Hungriest The busiest corner of the current AI market is cybersecurity, a field that’s quickly getting bundled into AI platforms themselves. Both sides are motivated to get deals done. AI companies want to buy because security firms have the data they need. They know their AI security products will only be as good as the data it’s trained on. Meanwhile, smaller cybersecurity companies are getting squeezed on two sides: by new AI entrants and by “one-stop-shop” consolidators like Fortinet Inc. (FTNT) and CrowdStrike Holdings Inc. (CRWD) that IT departments increasingly prefer.

For midsized players, that leaves two options: Sell out or bulk up fast enough to compete. Most will choose the first way out. Sector valuations are depressed (ironically thanks to AI fears), making it hard for smaller players to raise cash and acquire their way to a one-stop-shop size. Besides, high-profile cybersecurity scares are making AI labs even more motivated buyers. Last week, a rogue OpenAI agent hacked another AI startup, highlighting the desperate need for high-quality cybersecurity.

Here are the three public companies I think are likeliest to get a knock from M&A suitors: Tenable Holdings Inc. (TENB): This vulnerability management (VM) company was exploring a sale as early as 2024 after receiving takeover interest. A deal looks even more likely today, because Tenable is a leader in the internal IT scanning that defends against AI-orchestrated attacks. Tenable also throws off steady cash flows and carries zero net debt – catnip for private equity firms like Thoma Bravo and Permira. Consolidators like CrowdStrike might also get involved.