Markets sold off last week as US-Israeli strikes pushed oil prices to their highest level since 2024, and investors headed for prices on the risk of a protracted regional conflict.
In times of volatility, Wall Street strategists say some tech companies offer safe havens for those who have to invest in the stock market.
Rob Haworth, investment strategist at U.S. Bank Wealth Management, told Yahoo Finance that there is a definitive “structural sustainability” for AI businesses, with hyperscalers only seeing their investments increase by 30% in 2026.
Even as questions remain about the broader market, “it’s a story that we think continues and has legs,” he said.
The primary defensive anchors in this environment are Microsoft ( MSFT ) and Apple ( AAPL ), which DA Davidson analyst Gil Loria described as “relevant” needs.
Luria points out that even in an economic slowdown, consumers will continue to buy iPhones, as will businesses committed to Windows and Azure.
Dan Ives of Wedbush reinforced this, citing Microsoft’s massive $625 billion backlog and Apple’s “monster cash flow” as serious buffers against volatility.
Google parent company Alphabet (GOOGL, GOOG) is also seen as a flexible third choice because of its proven business model, although Luria is skeptical about “economically sensitive” names like META. This stems from Meta’s almost complete reliance on advertising, which accounts for around 98% of its revenue. While Microsoft and Alphabet have enterprise cloud buffers, Meta remains extremely vulnerable to a pullback in marketing budgets from small and medium-sized businesses.
Others on Wall Street are bullish on Amazon (AMZN), pointing to a significant margin opportunity for its retail and cloud service, Amazon Web Services (AWS). Michael Sears, vice president of Rockland Trust, told Yahoo Finance that Amazon is “the most attractive it’s ever been.” This difference highlights the shift toward high-margin cloud infrastructure as a hedge against traditional retail volatility.
As the global landscape darkens—oil prices rise and major indexes rise because of the US-Israeli attacks on Iran—the cyber security and defense sectors are turning to mission-critical facilities.
Read more: How fuel prices are hitting your wallet, from gas to groceries
Companies like Palantir ( PLTR ), CrowdStrike ( CRWD ), and Palo Alto Networks ( PANW ) are at the top of the list for an “aggressive” defense strategy, providing the digital protection needed to combat state actor threats, Luria said.
