U.S. major indices traded lower at midday Wednesday, pressured by sharp declines in tech and semiconductor stocks after Washington tightened chip export restrictions to China.
Piper Sandler cut its price target on Nvidia to $150 from $175, citing the surprise nature of the charge and the reduced outlook for data center products shipped to China.
Morgan Stanley now estimates Apple's annualized tariff cost burden to be a much more "manageable" $7 billion, or just 5% of EBIT, versus the $44 billion estimates as of last Thursday.
Goldman Sachs analysts raised earnings forecasts for top U.S. tech giants due to a White House decision exempting key electronics from Chinese tariffs.
Commerce Secretary Howard Lutnick said semiconductor tariffs are coming in probably a month or two after the late Friday announcement regarding exemptions for tech products.
Woodring suggested that Apple capitalize on the 90-day pause and look to its ODMs in India, namely Hon Hai, Pegatron and Tata, for ramping up production and meeting U.S. iPhone demand.
Hang Seng Index in bear market territory, losing 20% after US tariffs on Chinese imports. ETFs with exposure to Asia, Tech and Agriculture under pressure.
Several Wall Street analysts cut their price targets for Apple’s stock factoring in the negative impact of tariffs on the company’s top- and bottom-line.
Wall Street saw a tentative tech rebound early Wednesday, as investors begin to shrug off escalating U.S.-China trade tensions following a steep market selloff.
While Morgan Stanley analyst Erik Woodring sees China confrontation risks unlocking the bear case for the stock, he remained positive due to “several mitigation efforts at play.”
