Besides the political part of presidency, the tariff part is what we will really cover, as many tech companies from all over the world (Specifically global chain companies exporting goods to the U.S.) will leave companies with no choice, but to pay increased costs, charge consumers more, and finally potentially disrupt global chains, and tech company stocks.
Many different types of companies like hardware, stocks, tech products/gadgets, and even software will get effected by the final decision made by Trump.
Examples of what will get effected
Apple – Trump has already threatened Tech giant’s with a 25% tariff, and Apple’s main product, the Iphone, will get significantly taxed as parts and the phones are manufactured in China, which not only effect products, but also their stock price as plumets significantly as well.
Microsoft – Tariffs are going to make Microsoft’s parts and software increased in costs, including Xbox, Surface, and Azure Cloud Infrastructure. Microsoft relies heavily on other parts globally to get their parts, which China is a big part in Microsoft’s parts line. Again, like Apple, their stock will not be doing great with these hits.
Semiconductor Companies – Nvidia, Amazon, Intel, HP, Dell, Texas Instruments, Samsung, AMD, and other tech companies with personal computer or semiconductor manufacturing will be significantly changed considering these companies will also be hit with increased costs to bringing their products to the U.S., and like the other tech giants, will have their stock on a decline
When will Tech Stocks stop being on a decline?
It’s very difficult to say when tech stocks will stop declining, however with the massive growth of AI over the past years, they could be recovered sooner. Analysts are suspecting growth coming in these upcoming months, but with the economy slowing down with Tariffs, it’s safe to say for now, Stocks will be down. Investors who are comfortable with this risk may take the chance at any time, but do keep in mind, risks are higher than ever for tech stocks.
