Apple (AAPL), Microsoft (MSFT), and ServiceNow (NOW) are among the 10 tech stocks to own during the geopolitical conflict with Iran, Wedbush Securities said.
“Despite the recent sell-off this is not the time to panic and we view these as our Top 10 Tech Names to Own Through This Geopolitical Jittery Backdrop,” analysts at the firm wrote in a note to clients. “These tech names are defensive and well-positioned stocks to navigate this volatility with robust business models. The cybersecurity and military-exposed names (Palantir) are particularly well positioned in our view.”
CrowdStrike (CRWD), which recently reported quarterly results, is included in the list on the belief that it is innovative and offers a “best-in-class” Falcon platform that is “becoming increasingly effective in the modern threat landscape as AI adversaries become an incrementally larger threat.”
Palo Alto Networks (PANW) is also on the list as it uses artificial intelligence to gain traction and increase its value to customers. Increased AI usage from hackers also “provides a larger attack surface increasing the need for AI-driven cyber tools adoption across the enterprise,” the analysts explained.
Check Point Software (CHKP) is considered “well positioned” in security, even as it looks to develop a “competitive suite of cyber solutions across SASE, ERM, and E-Mail Harmony with AI an important driver of deal flow of business moving forward.”
Microsoft is considered the firm’s top defensive name in the tech trade. It is accelerating the monetization across cloud and AI and has a $625B backlog to capitalize on over the following quarters.
Palantir (PLTR) is in a “robust position” to keep getting deals from the U.S. federal government, as its Artificial Intelligence Platform becomes the default builder platform for the Department of War.
Planet Labs (PL) has seen “strong demand” for its space solutions and appears poised to keep winning contracts as more governments realize how critical geospatial data is, the analysts said.
Apple is another defensive name inside the trade, the analysts said. Investors have responded to the company’s success with its consumer-driven product portfolio, amid the iPhone 17 cycle and “monster cash flow.”
Voyager (VOYG) has shown “advanced” capabilities in numerous areas, including guidance, navigation and control, and its AI-driven intelligence, surveillance, and reconnaissance “position the company in a strong spot,” the analysts said.
Salesforce (CRM) is considered a long-term winner of the AI Revolution. The analysts believe it can monetize its more than 150,000 customers who have been a part of the Salesforce ecosystem for years.
For ServiceNow, the analysts said they believe there is a “disconnected valuation as AI will ultimately be a tailwind for existing implementations like ServiceNow with trillions of data points ingrained in enterprise infrastructure that will be difficult to replace.”