Seema Shah of Principal Asset Management stated that for equity investors seeking a safe harbor in the "fragile" market conditions caused by the Iran war, large-cap technology stocks have proven to be a secure choice. Investors are looking for strong balance sheets and positive cash flow, "which form the moat for many businesses—and AI technology sits right at the core of this," said Shah, Principal's Chief Global Strategist, on Wednesday. "People are searching for a sense of safety." The perception of tech stocks as safe-haven assets marks, to some extent, a reversal of their historical positioning. In the past, compared to other equities and U.S. Treasuries, tech stocks were typically viewed as high-risk, high-reward options. After declining over 9% in the first three months of 2026, the sector has led the gains in the S&P 500 this quarter. Intel, AMD, and Micron Technology have all risen more than 100% this quarter. Shah cautioned that tech stocks are not immune to the potential consequences of the war. Many raw materials essential for semiconductor production must pass through the Strait of Hormuz, which has largely been closed due to naval blockades by Iran and the United States. "A lot still depends on the trajectory of this conflict," Shah said. "There is a great deal of optimism in the market right now, which also creates vulnerability." However, Shah added that the declines in the initial weeks following the outbreak of the war in February presented opportunities. For long-term investors, she noted, there is an opportunity to "position into themes we believe are part of a long-term trend that will persist for years, even decades."