Apple, Dell, and Other Tech Stocks Surge on Tariff Exemptions
Tech stocks surged in premarket trading Monday, after President Donald Trump exempted smartphones, computers, and other consumer electronics from tariffs.
JPMorgan analysts said the exemption would be "a big relief" for Apple, which makes most of its devices in China.
Shares of Apple, as well as laptop maker Dell, rose in premarket trading on the temporary reprieve in tariffs.Apple (AAPL), Dell Technologies (DELL), and other tech stocks surged in premarket trading Monday, after President Donald Trump imposed a pause on import tariffs on many electronic goods.
Smartphones, computers, and semiconductors have been exempted from Trump's "reciprocal" tariffs, according to updated guidance from the U.S. Customs and Border Protection Friday, although Commerce Secretary Howard Lutnick on Sunday suggested the carve-out would be temporary.
JPMorgan analysts said the exemption would be "a big relief" for Apple, which makes most of its devices in China. They said they expect Apple "to significantly accelerate its diversification plans, including an initial focus on the assembly footprint." India now makes up around 15% of iPhone production, with Vietnam representing "a significant manufacturing center for Airpods and Watch, while still ramping on iPads and Macs," they said.
Apple shares were up over 6% in premarket trading Monday, after leading Magnificent Stocks higher in Friday's session. They are, however, down by more than a fifth so far this year through Friday's close.
Laptop maker Dell, which makes most of its products outside the U.S., saw its shares jump 7% in premarket trading Monday. JPMorgan analysts said in a separate note on retailer Best Buy (BBY), that they believe the pause in consumer electronics tariffs "is a clear indication of the importance of the products to the US consumer and the weight of large US companies" like Dell, Apple, and others.
Shares of chipmakers including Nvidia (NVDA), Intel (INTC), Qualcomm (QCOM), and Broadcom (AVGO), gained as well.
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