Escalating US-China trade war impacting tech companies like NVIDIA, Micron, Intel, and Qualcomm
From Nasdaq: 2024-12-27 10:35:00
The US-China trade war intensifies with a focus on technology, impacting key players like NVIDIA, Micron, Intel, and Qualcomm. Export restrictions and market challenges threaten growth prospects, with China imposing restrictions on rare earth metals. Uncertainties loom for tech companies reliant on China, affecting revenue streams and supply chains.
NVIDIA faces export restrictions, hindering sales to China and Russia. The company’s business in China is at risk due to US government actions aimed at curbing China’s technological advancements. The restrictions could impact NVIDIA’s top line, margins, and ability to support customers, affecting its stock performance.
Micron Technology faces export bans on advanced chips, impacting its sales in China. Restrictions from the US and China could jeopardize the company’s prospects, exacerbated by weak demand for memory chips. Geopolitical tensions and market volatility may further impact Micron’s financial stability in 2025.
Intel’s reliance on China for manufacturing and the US for R&D poses challenges amid the trade war. China’s shift to domestic chips and US export license revocations to Huawei could affect Intel’s top line. Efforts to reduce reliance on Chinese manufacturing face headwinds, impacting the company’s bottom line and stock performance.
QUALCOMM’s significant business in China faces threats from trade war restrictions. Similar to Intel, the US revoked chip export licenses to Huawei, affecting QCOM’s situation. Chinese policies aim for semiconductor self-sufficiency, potentially enabling existing customers to develop their own chipsets. The trade war poses risks to QUALCOMM’s business and market position.
The US-China tech war poses challenges for semiconductor companies like NVIDIA, Micron, Intel, and Qualcomm. Export restrictions and retaliatory measures impact immediate operations and long-term supply chain dynamics. Investors should monitor developments closely as the conflict could significantly impact the semiconductor industry’s growth in 2025.
Investors should exercise caution and monitor the trade conflict’s impact on tech stocks. NVIDIA and QUALCOMM hold a Zacks Rank #2 (Buy), while Micron and Intel are at a Zacks Rank #3 (Hold). The geopolitical landscape may bring volatility, requiring careful portfolio positioning for potential market shifts in 2025.
Read more at Nasdaq: Escalating US-China Trade War to Hurt These Tech Stocks in 2025