Tariff Turbulence: How Risky Are Tech Stocks Right Now?

From Nasdaq: 2025-04-24 04:20:00

The stock market has been in turmoil recently, with the S&P 500 and Dow Jones slipping. Nasdaq even entered a bear market. The cause? Concerns over President Trump’s import tax plan and its impact on the economy.

Tech companies, heavily reliant on overseas manufacturing, are on edge due to potential tariffs. While electronics are temporarily exempt, tariffs on the industry could be coming within a month.

Tech companies vary in exposure to tariffs based on production locations. Nvidia relies heavily on Taiwan, while Apple has expanded to India and Vietnam but still heavily relies on China.

The risk for tech companies lies in uncertain tariff levels impacting costs and demand. However, strong tech players with established track records may weather the storm.

Despite potential short-term pressure on earnings, tech companies are expected to maintain long-term prospects. This could be a good time for tech investors to consider buying beaten-down leaders for the long run.



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