Technology Stocks That Will Crash During The Trade War With China 📉



hello investors in traders out there Huawei has been blacklisted by the United States in this video I'd like to break down analyze and explore the implications for American businesses many companies in the United States have huge revenue exposure to China and with the United States blacklisting one of China's largest companies top united states corporations from chip makers to Google have frozen the supply of critical software and components to Huawei Technologies complying with a trump administration crackdown that threatens to choke off China's largest technology companies chip makers including Intel Qualcomm Z links and Broadcom have all told their employees they will not supply Huawei till further notice according to people familiar with their actions Google has cut off the supply of hardware and some software services to the Chinese giant these moves which had been anticipated hamstrung the world's largest provider of networking gear and number-two smartphone vendor the Trump administration on Friday blacklisted Huawei which it accuses of aiding Beijing in espionage and threatened to cut it off from the United States software and semiconductors it needs to make its products blocking the sell – Huawei of critical components could also disrupt the businesses of American chip giants like micron technology and the rollout of critical 5g wireless networks worldwide including throughout China that in turn could hurt United States companies that are increasingly reliant on the world's second largest economy for growth if fully implemented the trump administration action could have ripple effects across the global semiconductor industry Intel is the main supplier of server chips of the Chinese company Qualcomm provides it with processors and modems for many of its smartphones Z link sells programmable chips use in networking and Broadcom is a supplier of switching chips another key component in some types of networking machinery Huawei is heavily dependent United States semiconductor products and would be seriously crippled without the supply of key United States components the United States ban may cause China to delay its 5g network build and until the ban is lifted having an effect on many global component suppliers it's been preparing for such an eventuality since at least the middle of 2018 hoarding components while designing its own chips but its executives believe their company has become a bargaining chip in ongoing United States China trade negotiations President Donald Trump's moved to block Huawei is likely to escalate tensions between Washington and China elevating fears that President Donald Trump's goal is to contain China triggering a protracted Cold War between the world's largest economies in addition to trade fight that has rattled global markets for months the United States has pressured both allies and foes to avoid using Huawei 4 5g networks that will form the backbone of the modern economy the American clampdown also deals a direct blow to always fast-growing mobile services division this is major news for the markets let's take a closer look at what this means are some of the largest American businesses here is a chart and a graph a breakdown of just how much some American businesses are bringing in over in China we have the geographic revenue in Greater China the market cap of each company along with their price their earnings ratios we can see that Qualcomm has sixty six point six percent of its revenue coming from China micron technology 66.3% Nvidia 52.6% Broadcom 49.4% aims that we are all familiar with here Intel 41.6% Western Digital 40.8% AMD 38.9% skyworks 34.2% zamp lam research Z links Agilent Apple 19.6% analog devices 19 point five percent and we even see names like Boeing with 13.6% revenue exposure over in China China is the main source of income and if China were to move in and ban any of these companies that would definitely cripple and an impact earnings quite significantly and so if you're wondering what stocks are what businesses will be on sell all of these stocks are already on the firing block they are on sell as investors price in this major slowdown in these companies underlying earnings turning over to the charts we can begin to put into perspective just how much technology stocks have gotten crushed as investors price in this major slowdown this is a chart of Qualcomm Qualcomm shares in the last week have traded lower by close to 20% in Qualcomm is down ten point six six percent today if we turn over to a chart of micron technology micron technology shares are trading lower by 20% shifting over to chart of Broadcom Broadcom shares were recently trading around 325 since then shares have been sent down all the way down to two hundred and seventy dollars per share turning to Apple one of the largest companies in the world Apple most recently was trading around 215 investors have begun to price in a major slowdown in Apple's underlying earnings we can see the shares continue to trade lower and lower because investors are incredibly concerned about the banning of huee and what that means for American businesses we can see that the trade wars are going to affect all of these companies underlying earnings per share and their business trajectories over the long term I would absolutely love to know your guys own takes on everything that we discuss in this video if you enjoyed it be sure to smash that like button and as always I will catch you in the next one thank you so much for watching

25 Comments

  1. August Eurich said:

    I bought Intel last week…. thanks for crushing my dreams China!

    May 23, 2019
    Reply
  2. Danny Frank said:

    MU approaching book value looking like its about time to back up the truck!

    May 23, 2019
    Reply
  3. Shafi Ghori said:

    They have 5 year chip stock backup

    May 23, 2019
    Reply
  4. J Jz said:

    These stocks are oversold and should see a major bounce by a favorable tweet from 45. My money is on Broadcom. Great management not too expensive and gives you a nice dividend to boot!

    May 23, 2019
    Reply
  5. Philippe Cote said:

    you should do a video on $ROKU

    May 23, 2019
    Reply
  6. How to get rich from stocks said:

    Interesting move by the Trump administration to ban Huawei 👀

    May 23, 2019
    Reply
  7. Coin Stacks said:

    No wonder Qualcomm had a crash today.

    May 23, 2019
    Reply
  8. K 2 said:

    Very informative !

    May 23, 2019
    Reply
  9. wolfflow said:

    These accusations have never been proven against Huawei. The US just wants to use their own networks to spy on us just like how governments pushed 5g with a complete disregard for its harmful effects on life forms, especially infants. I couldn't help but scoop up a bit of SWKS yesterday though and will be happy to add more if it goes lower. Very ambitious company with no debt and great potential. Even though I have my concerns with 5g, I want to have a little skin in the game.

    May 23, 2019
    Reply
  10. Aaron Miller said:

    Only Common people are going suffer in this Trade war Stupidity !!

    May 23, 2019
    Reply
  11. WDW Man said:

    Screw China, they don’t trade fair, often not letting us sell our goods their and stealing intellectual property. I hope this twists their arm to make a fair deal in the future. Bring jobs back to USA!

    May 23, 2019
    Reply
  12. Sara Willis said:

    Once again the American Consumer loses out!!!

    May 23, 2019
    Reply
  13. Johnny Will said:

    The trade war is just getting started we will see -20% in the S and P 500 before this is all over

    May 23, 2019
    Reply
  14. Jane Dali said:

    Semiconductor stocks are down big I'm looking to buy!!!

    May 23, 2019
    Reply
  15. Jokeasterfe said:

    Thanks for the news 👍🏼 love the daily uploads

    May 23, 2019
    Reply
  16. Phil Newins said:

    This is just going to slow technological progress and innovation!

    May 23, 2019
    Reply
  17. Jennifer Babe said:

    It’s interesting that stocks aren’t tanking but we are in a full blown trade war and earnings are going to tank!

    May 23, 2019
    Reply
  18. Owlcity 56 said:

    Let's hope this all gets sorted out soon! This will hit the stock market hard. The United States and China need to make a deal.

    May 23, 2019
    Reply
  19. Jeff Calhan said:

    This is only going to ignite trade war tensions even more! This what a bad move by Trump.

    May 23, 2019
    Reply
  20. Jim Haley said:

    The polls are already showing their displeasure of king Trump trade war. Trump will go down in flames if he doesn’t get a deal. And all out trade war against China without having our allies on our side will be a costly mistake for our economy. China knows that Trump will be gone in 2020 if he continues on this path. I’m expecting some sort of concessions from our administration. If not I expect to see a very long difficult recession. Consumers are the 70% of our economy and they will stop spending. Good luck everyone

    May 23, 2019
    Reply
  21. Ariel R said:

    5g stocks are tanking hard I want to buy intel it’s down so much it’s crazy

    May 23, 2019
    Reply
  22. Space Documentary said:

    That ban will hit U.S. companies hard! This has creating buying opportunities thats for sure!

    May 23, 2019
    Reply
  23. Bearish said:

    watch $TEUM

    May 23, 2019
    Reply
  24. Money Andmurica said:

    Wow I didn't realize semiconductor stocks crashed this much! Great video man.

    May 23, 2019
    Reply
  25. Stocks On My Mind said:

    5g stocks are cheap right now! I’ll wait for lower then I’ll back up the truck

    May 23, 2019
    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *