Can US Tech Survive Trade Wars?

Tech giants Apple and Amazon have shrugged off trade war concerns so far on the way to ever-higher valuations, but risks remain

Brian Colello, CPA 4 October, 2018 | 7:22AM

Apple iPhone Xs Launch

The Nasdaq index is up more than 15% so far this year, but the US-China trade war adds risk to technology investments. Although companies have not been hit hard by tariffs just yet, we see many tech leaders assessing the current political situation and hoping for a satisfactory outcome.

Apple's (AAPL) popular gadgets, such as the iPhone and Apple Watch, are believed to be exempt from the trade war for now, which we suspect is a relief to the technology supply chain as the vast majority of Apple's devices are assembled in China.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Adobe Inc476.18 USD0.58
Alphabet Inc Class C1,921.37 USD1.16
Amazon.com Inc3,327.48 USD1.02
Apple Inc142.95 USD0.02
Cisco Systems Inc45.08 USD0.10
Oracle Corp61.47 USD0.94
Salesforce.com Inc226.17 USD0.11

About Author

Brian Colello, CPA  is a senior stock analyst with Morningstar.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies