Big Tech is a pawn in US-China trade war. Here's why some will feel the heat more than others.
Published On Feb 7, 2025, 10:50 AM
The article discusses the impact of the ongoing US-China trade war on major technology companies. The US has imposed a 10% tariff on all Chinese goods, which affects companies like Apple, Google, and Intel. China has retaliated by announcing antitrust investigations into some of these companies. Apple faces challenges from both sides; US tariffs could increase prices or squeeze profit margins, and China's scrutiny of its App Store practices could also impact its revenue. Intel generates a significant part of its revenue from China, making it vulnerable to potential repercussions from Chinese authorities. Meanwhile, Google operates minimally in China, and its situation appears more secure. Nvidia is facing pressure due to export restrictions from the US and potential investigations from China. Overall, the article highlights the precarious position of these companies in the geopolitical landscape.
Stock Forecasts
AAPL
Positive
Apple has a strong financial base but may encounter short-term challenges from tariffs and investigations; however, it is likely to find ways to minimize impacts, potentially stabilizing its stock.
NVDA
Negative
Nvidia is facing challenges from both the US and China, which may lead to volatility. With its important investments in AI, its stock could face headwinds in the near term.
INTC
Negative
Intel's significant revenue from China makes it delicate. Any adverse action could heavily impact earnings, raising concerns about its stock's outlook.
GOOG
Positive
Given its limited operations within China, Google seems to be less affected by these geopolitical tensions, likely maintaining stability.
Related News
After DeepSeek Upended the Market, Is It Worth Investing in A.I.?
Feb 7, 2025, 9:00 AM
After the arrival of a less costly A.I. model from China, U.S. markets and academics are wrestling with the ultimate economic value of the technology.
UK government demands access to Apple users' encrypted data
Feb 7, 2025, 7:35 AM
The Home Office served the notice to the tech giant under the Investigatory Powers Act.
Stock market today: Dow, S&P 500, Nasdaq slide as inflation, tariff fears push stocks to another losing week
Feb 7, 2025, 4:06 PM
Investors took in Amazon earnings, with the all-important jobs report on deck.