The AI theme is on fire despite no resolution in Iran. Semiconductors are soaring, up 20.1% in a month. Micron (MU) has joined the trillion-dollar club today, up 18% on UBS’s new target price of $1,625, now up 70% in a month, +833% LTM. SanDisk (SNDK) is at a new all-time high, up 52.5% in a month, +4,120% LTM.The demand for the "picks and shovels" of the data center buildouts appears to be unlimited, at least in the short term. This may bring an interesting inflation bump of its own, given the pervasive presence of semiconductors in so many products today, particularly in consumer electronics and cars.The situation in Iran continues to be fluid. While a complete agreement has been "right around the corner," mostly because the Strait of Hormuz must be opened in June as oil supply fundamentals start to break down painfully by July. But even today, there were reports of limited strikes by the U.S. on military targets in Iran, which is certainly destabilizing hopes of a lasting agreement. Secretary of State Mark Rubio has vowed that the strait was going to reopen "one way or another". The bond market reflected optimism as oil prices dropped, down 5-6 basis points across the yield curve from Friday’s close. They were even lower before the reports about the military strikes in Iran, as were crude oil prices. Corporate credit spreads, however, continue to fall on the strength of the equity markets. Bets for a Fed cut on the horizon are slim, though this could change quickly if crude oil drops to pre-Iran levels. It’s encouraging that the even-weighted S&P is not far behind the market weight S&P, as a broadening of returns would be very helpful given the record concentration of returns. With short interest in U.S. stocks at multi-year highs, the current market remains poised for further gains if the Iran situation is resolved with a workable solution.