Iran has threatened American tech giants. Is it time to sell?

The conflict in the Middle East has led to an unexpected target: American technology giants. Iran’s Revolutionary Guard Corps (IRGC) said it plans to attack the operations of American technology companies in the Middle East, naming most of the Magnificent Seven companies and other widely recognized companies.

These companies should take this threat seriously, as the IRGC has already attacked some of them. Amazon‘s (NASDAQ:AMZN) data centers. In fact, these types of attacks could slow the growth of technology companies, forcing them to spend more to maintain operations or possibly leave the region altogether.

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However, the most critical question for shareholders is to what extent these attacks affect technology stocks. Here’s what investors need to keep in mind, particularly with three of the biggest tech companies.

Amazon has been operating in the Middle East for a long time. It built multiple data centers in Bahrain in 2019, followed by a presence in the United Arab Emirates (UAE) in 2022. The company had also planned a $5.3 billion investment in Saudi Arabia in 2026. It is also worth noting that despite the attack, Amazon has not backed down in the region.

However, investing in Amazon requires putting the recent incident and the company’s investments in perspective. Actually, the Middle East is one of the many regions where it operates and plans to expand. Bloomberg estimates that Amazon operates more than 900 data centers in more than 50 countries, meaning the Middle East makes up a relatively small portion of its footprint.

The same could probably be said of microsoft (NASDAQ:MSFT). By the end of 2025, it committed to investing $15.2 billion in the UAE by the end of the decade, with this initiative starting in 2023.

Still, investors should remember that Microsoft is on track to spend roughly $145 billion on capital expenditures in fiscal 2026 alone. Additionally, it spent nearly $65 billion in fiscal 2025 (which ended June 30) and $44 billion in the previous fiscal year, implying that its investment in the Middle East is relatively a drop in the ocean.

In addition, the sales levels of the largest technology company in the United States, NVIDIA (NASDAQ: NVDA)They also seem to confirm this pattern. Nvidia made several deals to sell AI accelerators in Saudi Arabia by the end of 2025, deals that analysts estimate are worth between $15 billion and $20 billion through 2029.

However, Nvidia generated $216 billion in revenue in fiscal 2026 (which ended Jan. 25) and $130 billion in the previous fiscal year. That implies the company’s revenue could grow rapidly no matter what happens with its deals in the Middle East.

Ultimately, the conflict in the Middle East is unlikely to change the investment theses of the tech industry’s major companies, even in a worst-case scenario.

It is true that the attacks can cause billions in damage, and investors must take into account any possible end to the Iran crisis. Shareholders also cannot rule out the possibility of investors dumping shares of affected companies in the short term.

However, in the cases of Amazon, Microsoft and Nvidia (and probably most of their peers), the Middle East represents a small percentage of their operations and sales. This means that if you were bullish on these companies before the conflict began, you probably shouldn’t shy away from such stocks regardless of what happens with their activities in the Middle East.

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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Amazon, Microsoft and Nvidia. The Motley Fool has a disclosure policy.

Iran has threatened American tech giants. Is it time to sell? was originally published by The Motley Fool