China Tariff De-Escalation Biggest Winners Include Tesla, Apple: 'New Tech Highs Back On The Table Now For 2025'
An agreement by the U.S. and China to lower tariff amounts could send technology stocks to new highs, according to a well-known sector analyst.
What Happened: The U.S. is lowering its tariff on goods imported from China from 145% to 30%, while China has agreed to lower its tariff on U.S. goods from 125% to 10%. Both moves are temporarily in place for 90 days.
The deal announced Monday morning came after a series of weekend negotiations between the two countries.
Wedbush analyst Dan Ives discussed the winners in the tech industry in an interview with Bloomberg.
The Big Winners: Ives highlighted Apple Inc (NASDAQ:AAPL) as one of the biggest winners in the technology sector on the heels of the tariff news.
"It puts new tech highs back on the table now for 2025," Ives said.
Ives said tariffs have been the front and center story for Apple with the company hedging and saying it would shift production to India. With the news, Ives said this could slow down the shift to India for the iPhone 17 with China getting the vast majority of the production volume.
"There was a window here where this needed to change."
Ives said the 30% tariff could go lower in the future to a 15% to 20% range, something that might start to get baked into stock prices.
"It's a game changer."
Ives said Apple has "pricing power to an extent" and the tariff news still gives the company the flexibility to raise prices if it wants.
The analyst said Apple's AI strategy really needs to produce the iPhone 17 because a large portion of the company's installed base looking to upgrade phones in the next two to three years.
"This puts that key bull case back on the table."
The other big winner named by Ives from the China tariff news is Tesla Inc (NASDAQ:TSLA).
"Tesla's going to be a huge beneficiary in terms of what we see in this de-escalation of the U.S., China tariffs," Ives told CNBC.
During his interview with Bloomberg, Ives was asked about Tesla CEO Elon Musk's whereabouts after his time spent in the White House was viewed as a distraction to many.
"Thankfully not in the White House," Ives said of Musk's whereabouts.
Ives said Musk is back at Tesla driving the company's autonomy strategy ahead of a robotaxi launch in June.
"It speaks to why Tesla is up. You need your leader back. They got their biggest asset back."
Ives said investors will look back and view this as a "pivotal moment for the Tesla story."
Other Winners: During a CNBC interview, Ives said the trade progress between China and the U.S. is a positive for many stocks in the technology sector.
"If you are a tech investor, this is a dream scenario," Ives said.
Ives said the tariff change could see NVIDIA Corp (NASDAQ:NVDA) as a big winner.
"They are going to be one especially given the China tariffs."
Ives also named Oracle Corp (NYSE:ORCL), Palantir Technologies Inc (NASDAQ:PLTR) and Microsoft Corp. (NASDAQ:MSFT) as companies that the tariff news could be bullish for.
A slide shared during Ives’ discussion about Tesla being a big winner also showed cybersecurity stock picks from Wedbush. That slide included Palo Alto Networks Inc (NASDAQ:PANW), CrowdStrike Holdings Inc (NASDAQ:CRWD), Zscaler Inc (NASDAQ:ZS), CyberArk Software Ltd (NASDAQ:CYBR) and Check Point Software Technologies Ltd (NASDAQ:CHKP).
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