5 Tech Stocks Set To Gain From US Chip Crackdown On China: JPMorgan
Portfolio Pulse from Surbhi Jain
JPMorgan analyst Samik Chatterjee identifies five tech stocks—Flex Ltd, Jabil Inc, Ciena Corp, Arista Networks Inc, and Cisco Systems Inc—that could benefit from the U.S. administration's increasing restrictions on China's access to high-end semiconductors and technology.
July 17, 2024 | 8:23 pm
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POSITIVE IMPACT
Arista Networks Inc is expected to benefit from increased demand for its networking solutions as Chinese NEMs struggle with restricted access to essential components.
Arista's cutting-edge networking technology positions it to benefit from increased demand as Chinese NEMs face component restrictions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Ciena Corp could benefit from the U.S. restrictions on China as it offers advanced networking solutions that could capture market share from hindered Chinese NEMs.
Ciena's differentiated intellectual property and advanced networking solutions position it to capture market share from Chinese NEMs affected by U.S. restrictions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Cisco Systems Inc is well-positioned to benefit from the U.S. restrictions on China due to its robust portfolio of networking equipment and services.
Cisco's leadership in networking technology and robust portfolio make it a viable alternative for companies affected by U.S. restrictions on Chinese manufacturers.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Flex Ltd is strategically positioned to benefit from the U.S. restrictions on China due to its extensive manufacturing capabilities outside China.
Flex's manufacturing capabilities outside China make it an attractive option for companies looking to mitigate risks associated with China's regulatory uncertainties.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Jabil Inc is well-placed to capitalize on clients’ efforts to move production away from China, benefiting from the U.S. tougher stance on China.
Jabil's diversified manufacturing locations position it favorably to attract business from companies shifting production away from China.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100