3 AI Stocks Entangled in the Iran Conflict—What Savvy Investors Should Consider in 2026

AI Stocks in the Spotlight Amid Iran Conflict: What Investors Should Know

On February 28, the United States and Israel began a coordinated military operation against Iran, known as Operation Epic Fury. As airstrikes persist, major shipping lanes like the Strait of Hormuz have been obstructed, disrupting roughly one-fifth of the world’s oil trade. This has led to a surge in crude oil prices, raising concerns among investors that the economic fallout from war could stoke inflation and heighten global financial instability.

While companies in the oil and defense sectors have experienced immediate benefits from the conflict, the impact on artificial intelligence (AI) businesses has been more nuanced. AI is increasingly vital in geopolitical affairs, powering advanced computing, cybersecurity, and data analysis. These strengths make AI firms both susceptible to supply chain interruptions and well-positioned for growth, given their essential role in modern defense and intelligence.

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Let’s examine three AI stocks directly impacted by the Iran conflict and consider whether now is a strategic time for investors to add them to their portfolios.

Palantir: Powering Military Intelligence

Palantir Technologies (NASDAQ: PLTR) has a longstanding relationship with the U.S. military. In 2025, the company reported $1.9 billion in revenue from its U.S. government contracts, marking a 55% increase from the previous year. Notable deals include a $10 billion Army contract and a partnership with NATO. It is highly probable that the Department of Defense is utilizing Palantir’s Artificial Intelligence Platform (AIP) during Operation Epic Fury.

Since the onset of the Iran campaign, Palantir’s stock has climbed 12%, and some analysts believe this upward trend could continue. John McPeake of Rosenblatt recently highlighted that Palantir’s Foundry and Gotham platforms offer unique advantages over traditional large language models from companies like Anthropic and OpenAI, especially in defense. If the conflict persists, McPeake predicts Palantir shares could rise by another 40%.

Nvidia: Navigating Short-Term Risks and Long-Term Potential

Nvidia (NASDAQ: NVDA) produces the graphics processing units (GPUs) that are foundational for generative AI systems. The current turmoil in Iran presents both immediate challenges and future opportunities for the chipmaker.

With ongoing conflict disrupting global trade, particularly in Asia, Nvidia faces heightened supply chain risks, as it relies heavily on partners like Taiwan Semiconductor Manufacturing for chip production. Increased costs for fuel and raw materials could further strain Nvidia’s ability to meet the surging demand from its largest customers.

On the flip side, Nvidia’s hardware is integral to autonomous defense technologies, such as drones, and the company is a key collaborator in national AI initiatives in the United Arab Emirates and Saudi Arabia. While the Iran conflict may temporarily slow these projects, a return to stability could reinforce Nvidia’s leadership in the region’s AI sector.

CrowdStrike: Strengthening Cybersecurity in a Digital Battlefield

When considering the impact of war, most people focus on physical combat. However, cyber warfare is an equally critical front. As a result, robust cybersecurity has become as vital as traditional military assets.

CrowdStrike (NASDAQ: CRWD) specializes in endpoint protection, leveraging AI through its Falcon platform to predict and neutralize threats from adversaries beyond the physical battlefield. For example, CrowdStrike recently identified that a Russian hacker group, Z-Pentest, which supports Iran, has been targeting U.S. infrastructure as tensions escalate.

These developments highlight the essential role of cyber defense in safeguarding national interests.

Investment Strategies During Geopolitical Turmoil

Financial markets are notoriously sensitive to uncertainty, and periods of global unrest often lead to heightened volatility. Attempting to predict short-term market movements during such times is risky and best left to day traders.

Instead, investors should focus on long-term growth. The chart below demonstrates the historical performance of the S&P 500 (SNPINDEX: ^GSPC), with shaded areas indicating U.S. recessions.

The key takeaway: despite occasional downturns, the index has consistently rebounded, underscoring the resilience of the broader market. Whether facing economic slowdowns, political shifts, or international conflicts, the S&P 500 has historically delivered strong long-term returns.

In my view, Palantir, Nvidia, and CrowdStrike each offer compelling investment cases that extend beyond their involvement in current geopolitical events. These companies are well-positioned for future growth and may be attractive options for buy-and-hold investors, regardless of ongoing tensions in Iran.

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Adam Spatacco owns shares of Nvidia and Palantir Technologies. The Motley Fool owns and recommends shares of CrowdStrike, Nvidia, Palantir Technologies, and Taiwan Semiconductor Manufacturing. For more information, see our disclosure policy.

3 AI Stocks Caught in the Crossfire of the Iran War, and What Smart Investors Should Do in 2026 was originally published by The Motley Fool.