Market and economy largely isolated from oil shock of Iran war, says Wells Fargo's Ohsung Kwon

• The market and economy are largely insulated from the Iran oil shock, with oil intensity down 75% since the 1970s.
• Bullish on tech, particularly hyper-scalers (Magnificent 7), due to anticipated free cash flow inflection and accelerating top-line growth driven by AI demand.
• Sentiment for tech has reset after a 70% FCF estimate cut and 30% valuation contraction, suggesting upside potential.
• Prefers semiconductors over software, viewing software as 'dead money' despite its valuation reset, as the AI bull market shifts from CapEx to monetization.

Wells Fargo's Ohsung Kwon believes the market and economy are largely insulated from the Iran oil shock due to reduced oil intensity and ongoing fiscal stimulus. He is bullish on tech, especially hyper-scalers, following a significant valuation and free cash flow reset. Kwon prefers semiconductors over software, anticipating a shift to monetization in the AI bull market.