Research Alert: Apple And Semis Not Directly Exposed To China Tariffs; Hurt By 2nd Derivative

11:25 AM EDT, 04/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

China's newly announced 34% tariff on U.S. imports has minimal direct impact on semiconductor companies and APPL, in our view, as most U.S. chipmakers are fabless, with production flowing from Taiwan to China (and other regions), while AAPL's iPhone manufacturing is primarily in China. Yet, we expect considerable indirect effects from the news as hardware companies face potential consumer backlash globally, particularly in China where Apple's ( AAPL ) revenues have already been declining for the past two years. The trade tensions could also trigger retaliatory tariffs from other nations, potentially putting U.S. technology hardware sales internationally at further risk. For semiconductor companies, we anticipate broader negative implications including inventory buildup and lower utilization rates, with analog chipmakers exposed to automotive and industrial sectors facing the most pressure, while AI-focused companies like NVIDIA may show more resilience but are definitely not immune to EPS/revenue downside revisions.

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