It appears that President Trump is moving ahead with tariffs designed to ignite a trade war with China, making it likely that companies spread across a multitude of sectors and areas will be hit. Knowing which companies are likely to be impacted could make a significant difference in an individual investor's success at riding out the storm. Some of the stocks below are among those which could see the greatest damage as a result of a trade war with China, according to a report by The Street.
Skyworks Solutions (SWKS), the semiconductor company based in Massachusetts, is at the top of the list of S&P 500 companies with revenue exposure to China. Given China's assurance that it will retaliate against Trump's tariffs, it seems that SWKS could be slammed by the trade conflict. According to a report by UBS, Skyworks sees China accounting for about 80% of its total revenue.
Qualcomm (QCOM) is in a similar position to Skyworks Solutions. It also focuses on semiconductors and related technology. Significantly larger by market cap than Skyworks ($92 billion as compared with $20.3 billion), Qualcomm nonetheless relies on Chinese business for nearly two-thirds of its total revenue.
Third on the list of companies that may be negatively affected by a trade war with China is Qorvo, Inc. (QRVO). Like the companies above, this is a technology sector enterprise focused on semiconductors with a market cap of just under $11 billion. Qurvo sees about 60% of its revenue come from the Chinese market.
Intel (INTC) is the largest tech company on the list. With a market cap of nearly $240 billion and about 23% of its revenue linked to China, the manufacturer of computers and related products could be hit hard if the conflict ramps up.
The list of companies most likely to be impacted by a Chinese trade conflict is dominated by tech sector names and especially by companies operating in the semiconductor manufacturing space. However, there are other sectors which could be affected as well. Of materials-focused companies, Avery Dennison Corporation (AVY), the manufacturer of adhesive materials, faces the risk of a slump in response to Chinese trade issues. The company sees just under 20% of its revenue from China.
Boeing Company (BA), the major aircraft manufacturer, has 12.4% of its revenue linked to China. With more than $200 billion in market cap, the company faces the risk of a significant dip in revenue as a result of a Chinese trade war. Indeed, Boeing has already seen a stock dip based on speculation about the tariffs.