US tech stocks have emerged as safe havens during the Iran conflict, with the technology sector rising 1.5% since February 27 while all other S&P 500 sectors declined. Investors are abandoning sectors vulnerable to energy shocks, flocking instead to Silicon Valley's Magnificent Seven tech giants whose massive balance sheets and stable profits offer refuge.

This marks a dramatic reversal from earlier this year when concerns about AI disruption and heavy tech spending caused the Magnificent Seven index to fall over 6%. The conflict's energy price surge has shifted investor calculations, with the same index now up 1% since hostilities began. Goldman Sachs research shows technology was the most net-bought global sector between February 27 and March 5, driven by risk unwinds and short covering.

Analysts note that software stocks, previously hammered by AI disruption fears, have rebounded as investors recognize their relative immunity to energy price shocks. However, some warn the market's focus could quickly return to AI concerns once the conflict stabilizes. The current tech rally reflects both practical calculations about energy exposure and tactical repositioning by hedge funds unwinding short positions in AI-vulnerable sectors.