Apple and Dell Technologies are among the U.S. tech companies with large manufacturing footprints in China, placing them among the most at-risk names in the trade war between Beijing and the U.S., Bank of America found. The U.S. and China are engaging in an escalation of tariffs since U.S. President Donald Trump announced broad-ranging levies , putting the two largest economies at odds as global trade tensions and market concerns grow. China said duties on U.S. goods entering the country will rise to 84% from 34% starting April 10, in response to the latest U.S. tariff increase on China that began at midnight and now totals 104%. U.S. stocks, particularly those that stand to be affected by tariffs, remain volatile after selling off sharply in recent weeks. “Companies that are likely to see the most margin deleverage, and [earnings per share] impact are the ones that have supply chain concentration in heavily tariffed countries and higher mix of U.S. product revenues,” Bank of America analyst Wamsi Mohan said in a Wednesday note to clients. “We believe all the companies have several levers to pull (pricing, contract negotiation, supply chain management, etc.) to help offset the tariff impact.” See below for the stocks that manufacture a significant number of their goods in China, according to Bank of America’s analysis. Personal computer and printer maker companies Dell Technologies and HP Inc. are “expected to fare the worst given high exposure to China,” according to Mohan. Dell manufactures 40% of its products in China and HP makes 30% of its products there, the firm’s analysis found. Still, Mohan kept his $150 price target on Dell, which implies 106.6% potential upside from Tuesday’s close. His $35 price target on HP suggests the stock could gain nearly 60% from its latest close. Many of HP’s Mexico-sourced products, as well as Dell’s servers, are likely covered by the United States-Mexico-Canada Agreement, or USMCA, he said. An improving PC market backdrop and greater profitability from cost actions over the next several years are part of Mohan’s investment thesis for HP. Apple has been known to be one of the stocks under pressure from Trump’s tariff plans, and its shares have plummeted roughly 25% over the past month on fears over the duties. The iPhone maker sources 70% of its manufacturing from China, making it the most exposed U.S. company to China, according to Bank of America. The firm said Apple could see a $20 billion increase to its cost of goods sold, or COGS, meaning its direct costs tied to producing raw materials, labor and manufacturing. Mohan remains bullish on Apple, as his $250 price target implies the stock could jump about 45%. Apple is one of the companies that is most resilient in earnings per share compression, along with TE Connectivity and Sensata , he said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
Apple and other tech stocks with the most China manufacturing exposure
