The threat of tariffs is converted to many companies because they import everything more expensive. If this is the only source for products, then consumers or companies can be withdrawn in the purchase that they are waiting for tariffs in the hope that they will be reduced.
Furthermore, if the products become more expensive generally because of the tariff, it could reduce the confidence of the consumer and cause the consumption to fall over the board.
Many investors are worried about this, which is why the stock market has sold so hard over the last week. However, I think three companies could cause the chairman of Trump’s tariff policy, and each looks like a strong purchase after a sale.
Many companies could (and probably want) become on the other side of these tariffs quite fine, but I focus on the suppliers of AI hardware, because these are the companies most influenced by the tariffs. Nvidia (NASDAQ: NVDA),, Taiwanese semiconductor product (Nyse: tsm)and Broadco (Nasdaq: Avgo) All key suppliers for AI hyperscalers and I think they will be fine in the middle of the tariff.
Reason? Large AI companies cannot live without a hardware supplier products. Nvidia is making Graphics processing units (GPU) which are arranged in huge amounts for training of AI models and then managed by one distributed.
His GPUs and infrastructure that support them are the best in the game and have little competition. If you include other competitors, they also sources of parts outside the US, so they are subject to the same fears as Nvidia. Considering how vital GPUs are for AI race, the company will be fine.
Broadcom is in a similar job: it makes switches for connecting and adapted AI accelerators (which he calls XPU), among many other things, but it is expected that these two product lines will provide huge growth over the next few years.
Currently, only three companies use Broadcom -Ove XPU, and by 2027, this division will take a market opportunity of $ 60 to $ 90 billion. However, four more customers get and trigger their XPUs, which they will add to this occasion. Given that the revenue in the last 12 months was $ 54 billion, that would be a huge growth.
Although there are some fears focused on the tariffs for the two, the pressure on the superiority is much greater. As a result, investors must go through the short term and realize that there is still a ton of long -term potential with Nvidia and Broadc.
Taiwan Semiconductor (or in short TSMC) is the main supplier of both of these companies. None of them can actually produce chips, so they have to get them from somewhere, and TSMC is the best option available for top chips.
President Trump threatened to charge the tariff on Taiwan, but this threat seems to have faded after TSMC announced another $ 100 billion in investment in US manual production production facilities.
Taiwanese president and executive director of the Taiwanese semiconductor denied that President Trump forced this expansion, but the end result is the same: Trump got what he wanted by crossing TSMC more of his production in the United States
So, one of the most important suppliers that may have encouraged prices for Nvidia and Broadco products do not have to worry about tariffs at the moment – and these three are without the burden of tariffs, at least right now.
Until the market is convinced that there is no threat of tariffs, these three are likely to continue to sell out, which gives investors a huge opportunity to buy shares at a fantastic price.
After a sale, these three are found at prices that are rarely seen over the past year.
First, Taiwan Semiconductor looks ridiculously cheap with 18.8 times ahead of earnings. It’s one of the world’s most important companies but traded lower multiple than wider S & P 500 (Snpindex: ^GSPC)which has 19.8 forwards multiple earnings. This mismatch price does not make much sense, and investors should run into the occasion.
Nvidia is also quite cheap considering how vital GPUs are, and the fall from the place where he spent most of 2024. Another golden opportunity to buy shares on cheap.
Finally, Broadco is the most expensive, but if the XPU market is spoiled as foreseen, it could be a favorable price for shares.
All three supplies they look like fantastic shoppingBut investors must have a long -term thinking. Companies are likely to be successful investment in a three -year -old time frame. But it could be even short -term pain as it is impossible to call the bottom of the market in the middle of a sale.
Before you buy stock in Nvidia, consider this:
AND Motley Fool Stock Advisor A team of analysts has just identified what they believe they are 10 of the best stocks That investors could buy now … and Nvidia was not one of them. 10 stocks that made the cut could bring a monster return in the coming years.
Consider when Nvidia I made this list on April 15. 2005. … If you invested $ 1,000 at the time of our recommendation, you would have $ 745,726!*
It’s worth noting nowStock advisorThe total average refund is830%-the market of the market compared to164%For S & P 500. Don’t miss the latest Top 10 list, available when you joinStock advisor.
Keithen drury He has positions in the production of Nvidia and Taiwan semiconductor. Motley Fool has positions and recommends Nvidia and Taiwane mention. Motley Fool recommends Broadcom. Motley Fool has disclosure rules.
