Following a U.S. and Israeli joint attack on Iran that killed Supreme Leader Ayatollah Ali Khamenei, stock index futures fell while oil and gold futures surged. The article analyzes expected market reactions: defense and energy stocks likely to gain, tech and smaller stocks under pressure, and potential rotation into safer assets like utilities and dividend stocks. Market impact duration depends on investor perception of conflict longevity and severity.

Peter Thiel sold his entire $74 million portfolio at Thiel Macro in Q4 2024, including positions in Tesla, Microsoft, and Apple, signaling caution about AI and tech stocks. The move reflects broader market uncertainty about AI spending valuations and economic concerns, though the article suggests investors should consider their own strategies rather than blindly follow billionaire moves, as long-term prospects for quality AI companies remain intact.

Palantir Technologies has guided for 115% U.S. commercial growth, demonstrating accelerating revenue, expanding margins, and strong free cash flow generation. The company's AI-driven business momentum suggests current market pullbacks could represent buying opportunities for long-term investors.

Retail investors focused on five major stocks this week: Nvidia reported record $68.1B revenue but stock plunged 8.5% amid lukewarm investor reaction; Netflix declined to raise its WBD acquisition offer and may receive a $2.8B termination fee; AMD signed a blockbuster $60B deal with Meta to supply AI GPUs; Palantir announced strategic partnerships with GE Aerospace and Rackspace; Salesforce delivered record results with strong AI momentum but cautious FY27 guidance.

Picking individual AI stocks is challenging due to high volatility and unpredictable performance. The iShares Future AI and Tech ETF (ARTY) offers a diversified solution by holding 49 leading AI stocks across the entire value chain, including chip suppliers, software developers, and service providers. With a 0.47% expense ratio and 28.5% returns over the past 12 months, it provides broad AI exposure suitable for diversified portfolios, though investors should be cautious given the ETF's short track record in its current form.

The article recommends three stocks for long-term buy-and-hold investors: Energy Transfer LP, a midstream energy company with a 7% dividend yield; Cameco, a uranium mining company benefiting from global nuclear expansion; and Palantir Technologies, an AI platform provider with strong growth metrics and minimal debt.

Several companies are transitioning from strategic announcements to operational execution. Kraig Biocraft Laboratories has begun production of recombinant spider silk and received National Geographic cover feature. Rackspace and Palantir announced a strategic partnership to deploy enterprise AI in production environments. Ensysce Biosciences initiated a formal strategic review to explore partnerships and enhance shareholder value.

The article recommends Advanced Micro Devices (AMD) and Palantir Technologies (PLTR) as promising tech stocks for investors with $1,000 to deploy. AMD is benefiting from strong demand for EPYC server CPUs and growing adoption of Instinct GPUs, with revenues up 34% YoY despite recent stock pullback. Palantir is capitalizing on AI adoption with 70% YoY revenue growth and expanding commercial customer base, though trading at elevated valuations.

AI agents are expected to see massive adoption growth, with IDC forecasting a 10x increase by 2027 and a 1,000x surge in inference demands. Nvidia is positioned to capitalize on this trend through its GPU chips, CUDA platform, and agentic AI toolkit. The company's upcoming Vera Rubin accelerators promise 90% cost reductions in inference compared to Blackwell processors, potentially driving strong demand and earnings growth in 2026.

Software stocks have plunged 24% year-to-date amid AI disruption fears, but some SaaS stocks appear oversold. Figma, down 74% from its peak, shows strong growth with 40% revenue increase and GAAP profitability, plus aggressive AI product development. Axon Enterprise, a law enforcement technology leader, posted 39% revenue growth and is investing heavily in AI tools like Draft One for police reports, forecasting $8 billion revenue by 2028.

Palantir Technologies posted strong Q4 earnings with 70% YoY revenue growth, but trades at expensive valuations (P/S of 48x, P/E of 100x), causing Wall Street to maintain a hold rating. The author remains bullish on the company's long-term potential, citing its strategy to become the default operating system across entire industries, demonstrated by 137% YoY commercial revenue growth and expanding partnerships in sectors like automotive.

Despite tech stocks declining 2.15% year-to-date after a strong 2025, analysts argue the sector presents a buying opportunity in this late-stage bull market. While the NASDAQ is down over 5% from October highs and individual tech stocks like Meta, Amazon, and Palantir have experienced significant corrections, improving valuations and strong earnings growth suggest oversold conditions may reward investors willing to take on higher risk.