‘U.S. Bombing of Iran Won’t Derail Tech Stocks,’ Says Wedbush

Investment firm Wedbush Securities believes that the recent U.S. bombing of Iranian nuclear facilities won’t derail tech stocks. In fact, it might actually help. The firm says that many investors viewed the attack as inevitable, so its completion removes a major source of uncertainty from the market. Furthermore, a weakened Iran with no nuclear capabilities reduces threats to the Middle East and Israel, which Wedbush views as a net positive, particularly for tech stocks.

The firm also expects a boost for cybersecurity companies as investors now prepare for Iran to potentially retaliate through cyberattacks. Specifically, Wedbush highlights Palo Alto Networks (PANW), CyberArk (CYBR), CrowdStrike (CRWD), Zscaler (ZS), and Check Point Software (CHKP) as names likely to benefit from the rising demand for digital protection. These companies could see increased investor attention as global conflicts increasingly move into cyberspace.

Looking ahead, Wedbush notes that the attack reduces the risk of a “black swan event” in the Middle East, which is a region that is becoming increasingly important to the tech world due to recent deals with Saudi Arabia and the UAE. The firm recommends using any short-term volatility as a buying opportunity in leading tech and AI companies such as Nvidia (NVDA), Palantir (PLTR), Microsoft (MSFT), Amazon (AMZN), Oracle (ORCL), and Tesla (TSLA).

Which Tech Stock Is the Better Buy?

Turning to Wall Street, out of the tech stocks mentioned above, analysts think that NVDA stock has the most room to run. In fact, NVDA’s average price target of $173.19 per share implies more than 21% upside potential. On the other hand, analysts expect the least from PLTR stock, as its average price target of $104.27 equates to a loss of 24.4%.

See more NVDA analyst ratings