The US stock market, particularly technology shares, is shaking off geopolitical jitters following a US airstrike on Iranian nuclear sites, according to Wedbush analyst Dan Ives.
The successful strike removes an overhang on the market, Ives wrote in a note to clients on Sunday, referring to the US B-2 bombing of key Iranian nuclear facilities, including Fordow, Natanz, and Isfahan. "It was viewed... as a matter of when, not if,” the tech analyst noted.
Ives said investors globally have responded to the development with a sense of relief, viewing the move as neutralizing the most significant threat to stability in the Middle East — Iran’s nuclear program — which he described as the region’s "black swan event."
“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,” Ives wrote.
While some short-term volatility and headline risk are likely, he said investors should see any weakness as a buying opportunity, particularly in AI and cybersecurity-related equities.
Tech winners and AI stalwarts such as Nvidia Corp (NASDAQ:NVDA, ETR:NVD), Palantir Technologies Inc (NYSE:PLTR), Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN), Oracle Corp (NYSE:ORCL, ETR:ORC), and Tesla Inc (NASDAQ:TSLA) are seen as safe from any major moves.
Cybersecurity firms are also likely to come into focus as markets brace for potential Iranian retaliation in the form of cyberattacks. Ives highlighted CrowdStrike Holdings Inc (NASDAQ:CRWD), CyberArk (NASDAQ:CYBR), Zscaler Inc. (NASDAQ:ZS), Palo Alto Networks Inc (NYSE:PANW, ETR:5AP), and Check Point Software (CHKP) as top picks.
Ives added that regional optimism around technology adoption remains high, noting recent enthusiasm from Saudi Arabia and the United Arab Emirates to embrace the AI revolution following former President Trump’s trip to the region alongside major US tech executives.
“The market will view the worst as now in the rear-view mirror,” Ives said.