Uncertain Times for Apple and NVIDIA
The recent developments in US tariff policy have created massive uncertainty for tech giants like Apple and NVIDIA. They are particularly affected by the fluctuating statements of the US government, notably from President Donald Trump.
Apple in Focus
- Tariff Risks and Loss of Market Value: Apple has suffered significant losses in recent months, as US tariffs on Chinese imports heavily burden the company. Within three trading days, Apple lost about $640 billion in market value.
- Relocation of Production: To reduce dependence on China, Apple has begun relocating parts of its production to India, Vietnam, and Thailand. In the long term, this could help mitigate tariff risks.
- Tariff Exemptions: Newly announced tariff exemptions for certain electronic products offer Apple short-term relief.
- Price Increases: There are warnings that Apple may need to raise iPhone prices if tariffs remain in place for an extended period.
NVIDIA: Flexibility as an Advantage
- Flexibility in Supply Chain: NVIDIA benefits from a flexible supply chain that allows for quick adjustments. A significant portion of production occurs in North America.
- USMCA Agreement: Thanks to this free trade agreement, NVIDIA products manufactured in Mexico are tariff-free.
- Bullish Assessments: Despite tariff risks, Morgan Stanley remains optimistic about NVIDIA, supported by strong demand for AI products.
- Export Controls as a Risk: A significant risk for NVIDIA are potential export controls that could affect multinational customers.
General Uncertainty
The unpredictable US government policy brings significant uncertainty to the tech sector. This affects investment decisions and market expectations. The ongoing trade war with China and the associated tariff policy are putting pressure on the tech industry as a whole, especially companies like Apple and NVIDIA that rely on global supply chains.
Overall, political uncertainty remains a central issue for tech giants like Apple and NVIDIA. While short-term relief through tariff exemptions is possible, the long-term outlook depends on many factors, such as the development of global trade relationships and adaptability to changing market conditions.