Auto Tariffs: Which Stocks Will Weather the Storm?
President Donald Trump’s proposed 25% tariff on auto imports will be a “hurricane-like headwind to foreign (and many US) automakers”, wrote Dan Ives of Wedbush, as quoted in Seeking Alpha. Analysts see Tesla [TSLA] and Hyundai [HYMTF] as better placed than other auto stocks to weather the storm, while Chinese electric vehicle (EV) makers XPeng [XPEV] and Li Auto [LI] have led the sector this year.
TikTok: Tariffs are on the Table
Elsewhere, Trump signaled he might give China “a little reduction in tariffs” to secure a TikTok sale. He also suggested he could extend the April 5 deadline for a non-Chinese buyer, the BBC reported, but said he expected the outline of a deal to be in place by then. Trump initially delayed a ban on TikTok in January; the social media app is used by 170 million Americans.
D-Wave CEO on Quantum and AI
In an interview with Sherwood News, D-Wave Quantum [QBTS] CEO Alan Baratz explained the company’s quantum computing breakthrough, emphasizing its real-world utility over Alphabet’s [GOOGL] Willow. He criticized Nvidia’s [NVDA] Jensen Huang for downplaying quantum’s near-term potential, calling Nvidia’s Quantum Day “self-serving”. Baratz also addressed why artificial intelligence (AI) and quantum haven’t fully merged yet.
Upcoming IPOs to Watch For
After several slow years, IPO activity is heating up, with 66 filings in Q1 — up 27% from last year — while 46 IPOs have priced, a 53% jump. Nvidia-backed CoreWeave [CRWV] is set to debut today, aiming for a $3bn raise despite growing debt concerns. Upcoming IPOs include StubHub and Klarna. The cyber security and AI sectors, in particular, are tipped for an uptick in activity, Seeking Alpha reported.
Can the US Retake Chip Top Spot?
Taiwan Semiconductor Manufacturing Co’s [TSM] $100bn investment in advanced chip manufacturing in the US won’t restore the country’s lead in chipmaking, ex-Intel [INTC] CEO Pat Gelsinger told the Financial Times. While the White House lauded the move, Gelsinger argues true leadership requires R&D, which TSMC keeps in Taiwan. Read OPTO’s deep dive into the US chip sector and the challenges it faces in the Trump era.
Morningstar: Undervalued Wide-Moat Stocks
The Morningstar Wide Moat Focus Index tracks companies with strong competitive advantages trading below fair value. These firms, known for resilience in uncertain times, include Estee Lauder [EL], Nike [NKE], Pfizer [PFE], Campbell [CPB] and International Flavors & Fragrances [IFF]. Estee Lauder was the most undervalued, trading 44% below fair value, presenting a potential opportunity for long-term investors.
MU Stock: What Are Micron’s Prospects?
Micron Technology [MU] describes itself as one of the “global leaders in semiconductors” and says it is “leading the future of high-performance memory”. It is not clear whether investors agree with this assessment. Despite good Q2 results and an outlook that beat Wall Street expectations, MU stock tumbled following its recent earnings call. OPTO asks: will it be able to meet investors’ expectations going forward?
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