Veteran Wall Street firm makes surprise call on tech stocks originally appeared on TheStreet.

It’s been nothing short of a gut punch for tech stocks this year.

AI swings, sticky interest rates, and trade-war drama have weighed down tech’s rebound so far.

💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵

As if tech didn’t have enough problems, the Israel-Iran flare-up and U.S. airstrikes have added another dynamic.

However, despite the nervous energy on Friday, the markets seem relatively unfazed on Monday. One veteran Wall Street firm in particular feels the U.S. airstrikes on Iran might’ve helped calm the waters for tech, not shake them.

After two strong years, tech stocks took a hammering in 2025.

It kicked off in January when Chinese AI firm DeepSeek dropped its R1 model, with some of the biggest AI stocks shedding billions in days.

By mid-March, you had both the S&P 500 and Nasdaq sliding into correction territory, losing north of 10% from their peaks.

Related: Struggling EV semiconductor company files for bankruptcy

As many had predicted, investors finally buckled under the weight of lofty AI multiples and sticky interest rates.

As if things weren't bad enough, Trump’s trade moves had chipmakers staring down fresh tariffs and more global supply headaches.

This month, we saw the Israel-Iran conflict taking center stage with back-and-forth airstrikes adding to the geopolitical angst.

But then the U.S. finally stepped in with targeted hits on Iran’s nuclear sites, and weirdly, markets liked the move.

More Tech and AI Stock News:

• Circle stock is one of the market's biggest winners this week

• OpenAI's Altman slams Mark Zuckerberg, ignites drama

• Google plans major AI shift after Meta’s surprising $14 billion move

For tech stocks, which have been starving for clarity, that’s exactly the kind of signal they need to start clawing back some of those big gains.

Wedbush feels the market’s likely to shrug off the Iran strikes, with tech stocks likely to rebound with the overhang clearing out.

The veteran Wall Street firm feels most investors believed the U.S. strike was inevitable, a “when, not if” kind of move. In their view, a weaker Iran with no nukes takes away a major threat from the Middle East and Israel. This could be bullish for stocks, especially tech, as investors process the news.

Also, the firm expects cybersecurity stocks to push higher following the news. Wedbush mentioned the likes of Palo Alto Networks, CyberArk, CrowdStrike, Zscaler, and Checkpoint to get a boost, as investors expect cyberattacks from Iran.