This week, President Trump is reportedly planning to meet with CEOs who run large technology firms. This includes Qualcomm (QCOM), IBM (IBM), Intel (INTC), and HP (HPQ).
Expect the executives to discuss the impact of tariffs on technology exports. IBM has much to lose from tariffs. The stock trades near its 52-week high at a P/E of 40.76 times. If software sales fall and consulting contract revenue weakens, IBM stock may fall.
Qualcomm (QCOM) supplies chips to Asian-based smartphone firms, including Samsung (SSNLF). The CHIPS Act provided Samsung with around $4.8 billion. However, President Trump called the CHIPS Act a “horrible, horrible thing.” He wanted the U.S. to get rid of the Act, saying that companies take the money and do not spend it. Instead, the U.S. should use the money to reduce debt.
Computer supplier HP may weigh in on weaker PC sales. Trade restrictions and duties will raise prices. Consumers, who are reluctant to upgrade, will not purchase an HP computer as a result.
Investors will watch Intel closely. The struggling chip firm has billions in government funding for its manufacturing plants. Intel is under pressure to sell those properties to reduce its debt. The firm does not have a competitive CPU chip. By comparison, Nvidia (NVDA) and AMD (AMD) have better products. Those firms are less likely to hurt from the rise in trade restrictions.
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