Dialog Semiconductor Plc (75% of revenue) Immersion Corp. (69%) Cirrus Logic Inc. (66%) Quanta Computer Inc. (62%) Pegatron Corp. (61%) Japan Display Inc. (55%) Hon Hai Precision Industry Co. (45%) LG Display Co. Ltd (32%) Qorvo Inc. (32%) Jabil Inc. (28%) Taiwan Semiconductor Manufacturing Co. (22%) AMS AG (20%) Broadcom (20%)
Micron Technology Inc. and Western Digital Corp., which supply memory chips used in smartphones, could also be affected.
Retailers
Retailers may face earnings-per-share declines of 10%-30% or worse, Cowen’s Oliver Chen wrote in a note, as they’re “unlikely to be able to pass on all of potential cost of goods sold increases.” He sees “faster turning” retailers as among the first casualties, while “slower turning retailers will have more time to figure out alternative strategies.” Cowen flagged L Brands Inc., American Eagle Outfitters Inc., and Gap Inc. in the specialty space.
On the other hand, value-oriented retailers may benefit from trade tension as shoppers get increasingly squeezed. That may help Walmart Inc., Costco Wholesale Corp. and Target Corp., along with Burlington Stores Inc., TJX Cos., and Ross Systems Inc. Planet Fitness Inc. may get a boost too with “more consumers preferring deep value given its affordable membership.”
Goldman’s Christopher Prykull reiterated buy ratings on Dollar Tree Inc. and Five Below Inc. as near-term earnings-per-share impacts may be priced in. Ollie’s Bargain Outlet Holdings, Inc. also got its buy rating reiterated “given limited negative impact from tariffs as well as an opportunity to capitalize on disruptions in other retailers’ supply chains.”
Video Games
Console tariffs will probably dent sales of Sony Corp.’s Playstation, Microsoft Corp.’s XBox and Nintendo Co. Video game makers such as Activision Blizzard, Electronic Arts and Take-Two could also see revenue suffer as a result.
Nvidia Corp. and Advanced Micro Devices Inc., which make graphics processors used in gaming machines, may also be affected.
Storage Devices