Alistair Berg
Tech stocks are likely to “shake off” the U.S.’s bombing of Iranian nuclear facilities, as a key overhang to the market has been removed, Wedbush Securities said.
“Our initial take speaking with tech investors around the globe this week and overnight, it was viewed this US strike was a matter of when, not if the U.S. was going to do this B-2 attack and in turn this ultimately removes an overhang on the market in our view after this successful strike,” analysts at the firm wrote in a note to clients. “Furthermore, a weakened Iran with no nuclear capacity removes the biggest threat to the Middle East and Israel, which will be viewed as a positive for the market and tech stocks in particular as investors digest this news.”
The investment firm also said it expects cybersecurity stocks — with the firm specifically mentioning Palo Alto Networks (PANW), CyberArk (CYBR), CrowdStrike (CRWD), Zscaler, (ZS) and Checkpoint (CHKP) — to get a boost, as investors anticipate there will be some cyberattacks from Iran.
In addition, it removes the potential for a “black swan event” in the Middle East, which has become a key epicenter for technology, as evidenced by the recent deals signed with Saudi Arabia and the United Arab Emirates.
“There could naturally be some more volatility and headline risk this week, but we would encourage investors to buy our tech winners and AI Revolution stalwarts such as Nvidia (NASDAQ:NVDA), Palantir (PLTR), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Oracle (ORCL), [and] Tesla (NASDAQ:TSLA) on any weakness from geopolitical headlines.”
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