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This article first appeared on GuruFocus<\/a>.<\/p>\n The Magnificent Seven and broader technology sector are likely to benefit from a risk-on environment following the Iran ceasefire, according to an client note from Wedbush.<\/p>\n Analysts said the overnight <\/a>ceasefire news represents a major positive development for overall markets. The firm believes the nervous geopolitical backdrop of recent months has created an oversold tech environment for the Magnificent Seven, software names and AI-related winners, the note showed.<\/p>\n The sell-off in software stocks appears overblown, Wedbush added. Many companies are integrating artificial intelligence across their technology stacks rather than replacing products and services.<\/p>\n Investor concerns that Anthropic, OpenAI and other AI incumbents may shift toward becoming enterprise software infrastructure players are likely a stretch, according to the firm. After speaking with chief information officers across the industry, Wedbush said the core focus on revenue generation will center on partnering around AI workflows.<\/p>\n The firm believes the bottoming process in software stocks is likely in the rear-view mirror. Microsoft (NASDAQ:MSFT<\/a>), Salesforce and ServiceNow stand out as having disconnected selloffs relative to their AI monetization opportunities over the coming years, the note added.<\/p>\n<\/p><\/div>\n