3 AI Stocks Caught in the Crossfire of the Iran War, and What Smart Investors Should Do in 2026

On Feb. 28, the U.S. and Israel launched a military campaign against Iran, dubbed Operation Epic Fury. In the midst of ongoing airstrikes, key maritime routes such as the Strait of Hormuz have been blocked, affecting about 20% of the global oil trade. As the price of crude oil climbs in response, some investors now worry that war-driven costs could fuel inflation and exacerbate economic instability on a global level.

Industries tied to oil and defense have seen some direct gains as a result of the conflict, but the artificial intelligence (AI) sector has been more mixed. AI plays a critical role in geopolitics through advanced computational processing, cybersecurity, and data analytics. This makes the technology and its underlying components vulnerable to logistical disruptions but also uniquely positioned for growth due to the mission-critical needs it serves.

Let’s look at three AI stocks that are directly affected by the Iran conflict and analyze whether now is a good time for smart investors to scoop up some shares.

Palantir: The operating system for military intelligence

Palantir Technologies (PLTR 1.62%) has long partnered with the U.S. military. In 2025, Palantir generated $1.9 billion in revenue from its U.S. government segment — which grew 55% year over year. While the company’s marquee public sector deals included a $10 billion Army contract as well as a partnership with NATO, it’s highly likely the Department of Defense is using Palantir’s Artificial Intelligence Platform (AIP) to assist with Operation Epic Fury.

Since the start of the campaign against Iran, Palantir’s share price is up 12% — and the rally may just be getting started. Rosenblatt analyst John McPeake recently expressed that Palantir’s Foundry and Gotham software systems carry unique differentiators over traditional large language models (LLMs) from Anthropic and OpenAI specifically as it relates to defense operations. Should the war in Iran drag on, McPeake forecasts that Palantir stock could surge an additional 40%.

Nvidia: Short-term hardware risk, long-term strategic opportunity

Nvidia‘s (NVDA 1.56%) graphics processing units (GPUs) are the hardware backbone for building generative AI applications. The current situation in Iran comes with both near-term headwinds and long-term opportunities for the semiconductor powerhouse.

As the war continues to pressure international trade channels, this risk is particularly acute in Asian hubs. This could impact Nvidia as the company outsources much of its foundry needs to suppliers such as Taiwan Semiconductor Manufacturing. Rising fuel and materials costs could bring disruption to Nvidia’s supply chain at a time when the company is working furiously to meet the demands of its core hyperscale customers.

On the other side of the equation, Nvidia could be an under-the-radar beneficiary from defense AI as the company’s hardware stack is used in autonomous systems like drones. Moreover, Nvidia is a key partner in sovereign AI initiatives across the United Arab Emirates (UAE) and Saudi Arabia. While the situation in Iran may cause a brief disruption to these build-outs, eventual stability post-war could help solidify Nvidia’s influence in the region as a trusted AI leader.

Today’s Change

(-1.56%) $-2.87

Current Price

$180.28

Key Data Points

Market Cap

$4.5T

Day’s Range

$179.94 – $186.10

52wk Range

$86.62 – $212.19

Volume

6M

Avg Vol

176M

Gross Margin

71.07%

Dividend Yield

0.03%

CrowdStrike: Bolstering cyber defense against digital warfare

When investors think about war, it’s natural to become overwhelmed by obvious forms of combat: airstrikes and rocket launches. However, a subtle form of warfare also exists in the digital world. These threats make cybersecurity just as important an asset as aircraft carriers.

CrowdStrike (CRWD +0.01%) is a specialist in endpoint security. The company’s Falcon system utilizes AI to anticipate and deter motives from actors beyond the battlefield. For instance, the company detected that a group of Russian hackers known as Z-Pentest, which supports Iran, has been targeting American industries and systems as the situation in Iran intensifies.

These actions underscore the importance cyber operations play in defending the U.S. government.

How should you invest during times of war?

The capital markets hate uncertainty. During periods of global instability, stocks often exhibit pronounced volatility. This can make investing during times of war incredibly dicey. Anticipating the market’s next move is best suited for day traders. This is especially true during times of war and tragedy.

Instead, I’d encourage investors to think about the long term. The graph below illustrates the long-run performance of the S&P 500 (^GSPC 0.61%) — with the grey columns representing periods when the U.S. economy was in recession.

Data by YCharts.

The takeaway is that while the index has dipped from time to time, it has always recovered. This proves that the broader market is a resilient opportunity and has the ability to weather many storms. Whether it’s an economic slowdown, a change in political administrations, or even geopolitical tensions, the S&P 500 always rises in the long run.

In my eyes, Palantir, Nvidia, and CrowdStrike each hold compelling narratives outside of their associations with regional conflict. While these companies will likely play a major role in defense operations going forward, I see them as strong opportunities to buy and hold — regardless of the situation in Iran.