Investors should monitor impact of tariffs on AI stocks, with potential entry point in 1H25

From Investing.com: 2025-03-10 02:20:00

This week’s Tech Edge explores the impact of tariffs on the AI trade and highlights the areas with the best opportunities. The import tariffs in effect are 25% on Canada, 25% on Mexico, and 10% on China. Experts predict that Canada/Mexico tariffs will be rolled back, while the China tariff will remain. The impact on Canada and Mexico’s GDP is estimated to be around (-2%). In 2018, the tariffs had a minimal impact on fundamentals like margins and demand. The AI trade is most impacted by tariffs due to positioning unwinds and a shift in product generation for Data Center Hardware. Data Center Hardware companies are reporting strong growth, but investors remain cautious. Despite the challenges, the demand for AI technology remains high, presenting a potential entry point for investors in 1H25.



Read more at Investing.com: The 2025 Tariff Shock: Here’s Why Investors Should Watch AI Stocks Closely