Tech companies are heavily exposed to China, putting gains at risk, Piper Sandler says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 26 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 49%
  • Publisher: 72%

Breaking News: Investing News

Wall Street,Business,Markets

Tech companies are especially vulnerable to any weakness in China, with semiconductor businesses notably generating more than 30% of their sales in the country.

Tech stocks are heavily exposed to China, which could put gains at risk, according to Piper Sandler. S & P 500 large-cap companies have a near-record reliance to sales in China at a time when the country is still contending with a slump in the real estate industry, as well as a greater push by Beijing to buy domestic, the firm's chief global economist Nancy Lazar wrote in a Wednesday note.

In April, the VanEck Semiconductor ETF has dropped about 7%, underperforming the S & P 500's more than 3% decline during the same period. Shares of Advanced Micro Devices and Intel have plunged more than 15% and 21%, respectively, this month. "S & P large caps have near-record exposure to a China that is wobbly economically, with an increasingly authoritarian Heavy Hand of regulation," Lazar wrote Wednesday. "Some sectors/companies look particularly vulnerable.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Buy these 2 software stocks as they are 'having the lowest AI uncertainty'Buy these 2 software stocks as they are 'having the lowest AI uncertainty' - Piper Sandler
Source: Investingcom - 🏆 450. / 53 Read more »

Stock Market Today: S&P 500 rallies on tech strength ahead of big tech earningsStock Market Today: S&P 500 rallies on tech strength ahead of big tech earnings
Source: Investingcom - 🏆 450. / 53 Read more »