|Day's Range||3.8300 - 3.8800|
Telecom giant Huawei is calling the ban by the Federal Communications Commission "unconstitutional." Yahoo Finance's Adam Shapiro, Julie Hyman, Dan Roberts and Akiko Fujita break down the details.
John Deere posted a beat on earnings and revenue in its third quarter earnings results but did warn over trade tensions. Yahoo Finance's On The Move discusses.
Gary Silberg, KPMG Automotive Leader, joins Yahoo Finance to discuss how automotive technology is boosting the semiconductor business. He talks to Julie Hyman, Adam Shapiro, Pras Subramanian and Brian Cheung.
Micron Technology, Inc. (MU), today announced the publication of its second annual diversity, equality and inclusion report. “Micron is pleased to announce the publication of our Diversity, Equality and Inclusion FY19 Annual Report, demonstrating our commitment to creating an environment where all team members can bring their authentic selves to work and contribute ideas that drive business success,” said Micron Vice President of Diversity, Equality and Inclusion Sharawn Connors.
We are still in an overall bull market and many stocks that smart money investors were piling into surged through November 22nd. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 52% and 49% respectively. Hedge funds' top 3 stock picks returned 39.1% this year and beat the S&P […]
Investing.com – Chip stocks swung lower on Friday on a report that the U.S. government is looking at measures to stop foreign companies from supplying equipment to key Chinese chip customer Huawei.
Chinese investments into Malaysia halved to $1.7 billion in the first nine months of the year from a year ago, though U.S. investments soared seven times to $5.9 billion - reflecting a diversion of funds due to the Beijing-Washington trade clashes. Data provided by the Malaysian Investment Development Authority (MIDA) to Reuters on Friday showed that China, traditionally the Southeast Asian country's biggest investor, has now slipped to third position behind the United States and Japan. Foreign direct investment (FDI) from Japan, with whom Malaysian Prime Minister Mahathir Mohamad is trying to strengthen ties, jumped more than four times to 11.81 billion ringgit ($2.83 billion) in the January-September period.
Investing.com - U.S. futures fell in holiday-thinned trade after U.S. President Donald Trump signed legislation into law that supports Hong Kong protestors, raising a further hurdle to a trade deal with China.
Does ServiceNow Inc (NYSE:NOW) represent a good buying opportunity at the moment? Let’s quickly check the hedge fund interest towards the company and compare it against its peers like Norfolk Southern Corp. (NYSE:NSC), Prudential Public Limited Company (NYSE:PUK), Micron Technology, Inc. (NASDAQ:MU), and Schlumberger Limited. (NYSE:SLB). Hedge fund firms constantly search out bright intellectuals and […]
BOISE, Idaho, Nov. 26, 2019 -- Micron Technology (Nasdaq:MU) Chief Executive Officer Sanjay Mehrotra will participate in a fireside chat at the Credit Suisse Annual Technology.
Let's dive into three tech stocks we found with our Zacks Stock Screener that growth investors might want to consider buying right now as the stock market remains near its new highs...
With trade war tensions heating up once more and less-certain victory on the price chart, are shares of Micron Technology (NASDAQ:MU) still a buy? Let's take a peek at what's happening in order to reach a stronger risk-adjusted decision on where to buy MU stock in today's market.Source: Piotr Swat / Shutterstock.com Relatively speaking, MU stock has been a dog the past couple months. A misread of Micron's mixed earnings report by Wall Street quickly followed by October's brief, broad-based spook proved a treat for investors first in line, but not so much for latecomers. * 7 Companies Using Artificial Intelligence to Outperform the Market The fact is, Micron's gains of around 10% since October's bottom pale by comparison to most large-cap technology stocks. Semiconductor peer Advanced Micro Devices (NASDAQ:AMD) is up roughly 42%. Even the typically slow-to-move industry giant Intel (NASDAQ:INTC) is up roughly double MU's take-down for its shareholders. INTC stock is also near all-time-highs. That of course is far from the situation in Micron stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith the U.S. saying it may retaliate with additional trade tariffs and signs of softening broader industry demand, is the writing on the wall for MU stock? Let's take a look at the price chart once more to see if today's fears warrant more merit than yesterday's news. MU Stock Weekly ChartSource: TradingView Despite its relative weakness, the good news in MU stock is that shares remain in a larger up-channel. However, since discussing Micron as a purchase in early October, I'm rightfully more cautious on the name.Subsequent price action has formed a lower-high pattern which failed at channel resistance. What's more, the price action was also unsuccessful in clearing MU stock's 50% Fibonacci level dating back to its all-time-high from 2000. It could be an early warning for investors.Coupled with a bearish stochastics crossover in neutral territory, it's time for bulls to tread lightly in MU. Bottom-line, Micron stock could swing aggressively lower towards $37 - $38 while remaining in the larger bullish pattern. And that means there's little reason to buy shares today. Micron Stock StrategyMy suggestion for investors interested in buying MU stock would be to wait for one of two things to occur on the price chart. If shares can take out the recent lower-high pattern and rally through resistance at $50, a purchase of momentum looks very promising.Alternatively, buying Micron shares on weakness under the right circumstances is another strategy to consider. For now, the best advice is to wait for weekly chart confirmation of a low to form. Typically, a two to three candlestick reversal pattern is how a bottom will develop. The additional time required by this entry should also help build a more supportive-looking stochastics setup and offer increased odds for a profitable investment.Investment accounts under Christopher Tyler's management currently own positions in Micron (MU), Advanced Micro Devices (AMD) and their derivatives but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post Do Not Buy Micron Technology Stock Today appeared first on InvestorPlace.
Editor's note: "10 Tech Stocks to Buy Now for 2025" was previously published in September 2019. It has since been updated to include the most relevant information available.The tech sector has endured some pretty tough times since the beginning of 2018. Even Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Facebook (NASDAQ:FB) have struggled at times during that period.But if we put these troubles aside for a moment and focus on the longer-term outlook, a different picture emerges. Stretching out to 2025, some of these big-name tech stocks begin to look very attractive indeed -- especially at their current price levels.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn order to pinpoint which tech stocks will be leading the way seven years from now, I turned to a recent report from RBC Capital. Its "Imagine 2025" portfolio selects the tech stocks the firm believes will be winning on a long-term basis. "We believe the following names are best positioned to outperform over a seven-year time horizon through 2025," writes the firm.What does this mean for now? It means longer-term investors should think twice before selling the stocks listed below, while other investors may want to keep a close eye on the following stocks as potential buy on the dip opportunities. * 7 Companies Using Artificial Intelligence to Outperform the Market Here are the top tech stocks primed to outperform over the next few years: Alphabet (GOOG, GOOGL)Source: Shutterstock As I said above, Alphabet has not been immune to the market's choppiness but that doesn't mean it's still not one of the top stocks to buy.At the end of the day, this is still a killer stock pick with a "strong buy" analyst consensus on TipRanks. This is with a $1455 average analyst price target."AMZN and GOOGL, in particular, appear to have invested the most in AI competencies and have the Big Data access and Compute Power infrastructure to benefit most from AI and ML developments," writes RBC Capital.And Google has an extra string on its bow: its self-driving car unit Waymo. Alphabet disclosed that Waymo reached the 10 million miles of autonomous vehicle driving milestone."GOOGL appears particularly well situated to lead autonomous vehicle innovations, given its substantial investments in Waymo autonomous vehicle technology," it said.Luckily for Alphabet, RBC believes autonomous vehicles will be arguably one of the biggest applications of AI.Interested in GOOGL stock? Get a free GOOGL Stock Research Report. Nvidia (NVDA)Source: Shutterstock Nvidia (NASDAQ:NVDA) is pushing the boundaries of technology and this should pay off over the years to come.Even though Nvidia is suffering over the last six months, the long-term picture remains very compelling making this one of the top stocks to buy and hold.For example, Jefferies analyst Mark Lipacis (Track Record & Ratings) says Nvidia remains "a top play on secular themes" in AI, gaming and autonomous vehicles. He tells investors to "buy the confession." * 7 Companies Using Artificial Intelligence to Outperform the Market "While there are no guarantees of a winner in the AI race, we think Nvidia is well ahead of its peers and is continuing to gain traction due primarily to the value of Cuda software," says RBC Capital. It estimates over one million engineers working with Cuda and calls it "the secret sauce that underlies the entire ecosystem." Get the NVDA Stock Research Report. Amazon (AMZN)Source: Atomic Taco Via FlickrYou probably aren't surprised to see Amazon (NASDAQ:AMZN) on this list. The e-commerce company is consistently innovating for the future, be it through acquisitions, technology or entering new markets.One interesting advancement for the company is in the field of robotics. "Amazon appears particularly well situated to lead robotics innovations, given its ongoing investment in Kiva logistics robots," points out RBC Capital.The company already deploys something to the tune of 100K Kiva robots, basically a robot army. And it's now looking increasingly likely that a very large percentage of Amazon's distribution workforce will be complemented with these robots by 2025.As RBC concludes, the impact of this should be greater operational efficiency for AMZN stock.Another interesting trend to consider when you're looking at tech stocks to buy: AI-powered Voice Recognition will likely improve significantly from current levels, allowing even better use of internet apps via voice commands. Again, Amazon should be a major beneficiary of this trend.Notably, AMZN boasts one of the best ratings on the Street. This comes with a $2,182 average analyst price target. Get the AMZN Stock Research Report. Rapid7 (RPD)Source: Shutterstock If you are looking for cheaper long-term stocks to buy, look no further than Rapid7 (NASDAQ:RPD). This company uses a unique data- and analytics-driven approach to cybersecurity.The stock is highlighted by RBC as an attractive name in the cybersecurity space, particularly following the recent acquisition of Komand. The company snapped up Komand in 2017 to boost its security orchestration and automation offering."The need for well-designed security and IT automation solutions is acute; resources are scarce, environments are becoming more complex, all while threats are increasing," says Corey Thomas, CEO of Rapid7."Security and IT solutions must evolve through context-driven automation, allowing cybersecurity and IT professionals to focus on more strategic activities." * 7 Companies Using Artificial Intelligence to Outperform the Market Plus RBC's Matthew Hedberg (Track Record & Ratings) is behind the stock. "Success has continued to highlight the power of the platform approach with impressive cross-sell metrics driven by combining security and IT Ops" concludes the analyst. Get the RPD Stock Research Report. Splunk (SPLK)Source: Web Summit Via Flickr"Within our software universe, we would highlight Splunk (NASDAQ:SPLK) as a likely winner in the big data category," writes RBC Capital.Splunk basically turns machine data into answers. It produces software for searching, monitoring and analyzing machine-generated big data, via a web-style interface.In part, these answers are generated through the firm's machine learning system. Splunk provides the Machine Learning Toolkit, a guided workbench to create and test flexible models that can handle any use case."A key value of creating models in Splunk is that users can seamlessly apply them to real-time machine data" says RBC Capital.Plus RBC isn't the only firm singing the stock's praises. This "strong buy" stock has a $158 average analyst price target. Get the SPLK Stock Research Report. PayPal (PYPL)Source: Shutterstock If we turn to financial tech stocks to buy, analysts are upbeat on"moderate buy" stock PayPal (NASDAQ:PYPL) right now. This is with a $135 average analyst price target.First of all, PayPal offers massive scale. And second, it boasts a unique two-sided model among tech stocks, with both consumers and merchants onside. This means the company can control the entire consumer experience."PayPal's unique assets enable the company to tap into the long-term global shift to digital commerce" says RBC Capital. * 7 Companies Using Artificial Intelligence to Outperform the Market Plus the firm sees the company as a champion of democratizing finance around the globe. "We believe its growing platform of assets will open up the ~2B people around the world who lack financial services."Similarly, top Oppenheimer analyst Glenn Greene (Track Record & Ratings) notes PYPL's "unique" competitive position. He is even more confident in the stock following recent partnerships and anticipates high-teens revenue growth and 20%-plus EPS growth for the next several years. Get the PYPL Stock Research Report. Apple (AAPL)Source: Shutterstock RBC Capital sees a long runway for Apple (NASDAQ:AAPL) stock."We think AAPL could be a major beneficiary of AI and VR/AR-related trends, which could generate significant tailwinds for its services business," it writes. It notes that the latest iPhones are equipped with the ability to recognize patterns, make predictions and learn from experiences.What's even more interesting is that by 2025 we could be looking at the first real "iPhone generation." 2025 is 18 years from the launch of the first iPhone.For people who grew up with iOS devices, Apple could have data on every app a person installed, on every flight, book and purchase, as well as academic records, health statistics, family background and more.Now imagine an AI trained on this data set. "This AI would truly be a 'personal' assistant. A hyper-customized neural network that would be so powerful, it would make an existing services pool very strong and usher in a host of new offerings that can only be imagined" says the firm. Get the AAPL Stock Research Report. Synopsys (SNPS)Source: Shutterstock SNPS is one of the best stocks to buy in the chip sector because it is pretty much a guaranteed winner of future tech trends. Someone needs to design AI chips and that someone is Synopsys (NASDAQ:SNPS).Synopsys is essentially an "arms dealer" for AI and all things chip related says RBC Capital."By helping design complex chips, Synopsys is in the thick of AI in terms of design," the firm writes. And the best part is that it doesn't even matter what new companies come along they will still need Synopsys. * 7 Companies Using Artificial Intelligence to Outperform the Market "As new and existing companies continue to push the edge of technology, Synopsys will be helping the companies design each chip regardless of it being a GPU, CPU, FPGA, Digital Chip, Analog chip or otherwise" the firm explains.Even now, the stock looks bullish with a "strong buy" analyst consensus and a $159 average analyst price target. Get the SNPS Stock Research Report. Micron (MU)Source: Shutterstock One of the great secondary chip stocks to buy is Micron (NASDAQ:MU). All future trends result in data creation and Micron is perfectly positioned for this with its DRAM/NAND memory portfolio."The incredible amount of data generated by AI, AR/VR and autonomous driving would require significantly higher memory, both NAND and DRAM, leading to strong and long-term tailwinds for MU" writes RBC Capital.And the tech stock still retains its "moderate buy" analyst consensus rating. This is with a $55 price target. Get the MU Stock Research Report. Microsoft (MSFT)Source: Shutterstock Last but not least, make sure to make room for Microsoft (NASDAQ:MSFT). This is a company that ticks all the boxes when it comes to the best stocks to buy for future trends"Leading hyperscale hybrid cloud platform with big runway of growth in AI, IoT, Gaming and other services" explains RBC on the stock's inclusion in its 2025 portfolio.Like GOOGL and AMZN, MSFT stock benefits from 1) massive amounts of raw compute power; 2) large data sets; and 3) ability to hire the smartest data scientists on the planet.It picks Microsoft as the No. 1 AI company in the public cloud space. This is thanks to the company's rapidly growing Azure cloud platform. * 7 Companies Using Artificial Intelligence to Outperform the Market "We believe Microsoft is in an enviable position vs other public cloud competitors as their customers can also leverage AI and ML capabilities on premise, something [Amazon's] AWS and [Google's] GCP can't deliver natively," said RBC Capital.Also note the stock's killer "strong buy" rating with all 26 analysts covering MSFT bullish on the stock's prospects. Get the MSFT Stock Research Report.TipRanks.com offers exclusive insights for investors by focusing on the moves of experts: Analysts, Insiders, Bloggers, Hedge Fund Managers and more. See what the experts are saying about your stocks now at TipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post 10 Tech Stocks to Buy Now for 2025 appeared first on InvestorPlace.
Friday's three big stock charts focus on stocks that look a bit wobbly at the moment. That seems fitting because the broad market suddenly looks that way as well.Source: Shutterstock It's not time to panic yet. The S&P 500, for instance, is down half a percentage point for the week after closing Friday at an all-time high. Still, the index has finished in the red for three consecutive sessions, and the same has been true for the Dow Jones Industrial Average. * 7 Companies Using Artificial Intelligence to Outperform the Market In this week's trading, there's a case for at least modest caution. The impeachment inquiry in the House of Representatives is kicking off a year of political news served to a sharply divided populace. Valuations look stretched in some sectors of the market. Earnings this week have not been impressive, particularly on the retail front. A whiff by Home Depot (NYSE:HD) raises concerns about the key construction sector, while department stores Kohl's (NYSE:KSS) and Macy's (NYSE:M) declined ahead of a compressed holiday shopping season.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAgain, a sell-off isn't necessarily imminent, but the market suddenly seems more uncertain than it has at any point in the last few months. Friday's big stock charts look at stocks in a similar situation. All three have done reasonably well of late. But both technically and fundamentally, there's a real possibility that all three could pull back. Micron Technology (MU)Source: Provided by Finviz I wrote this week that Micron Technology (NASDAQ:MU) could be headed for a fall, and the first of Friday's big stock charts is just one reason why: * The technicals look concerning for several reasons. MU stock has broken out to the downside of both a sideways triangle and a longer-term ascending narrowing wedge. Both moves usually are bearish and signal further weakness ahead. Combined with low volume and the recent dip below the 20- and 50-day moving averages, and MU stock at the moment seems to have a clear path to the 200 DMA closer to $42, about 7% further downside. * There's also the fact that the rest of the semiconductor sector mostly has soared. Advanced Micro Devices (NASDAQ:AMD) has broken out. Nvidia (NASDAQ:NVDA) has gained over 40% since early August. Meanwhile, Micron stock and fellow memory play Western Digital (NASDAQ:WDC) are moving in the wrong direction. Investors are buying chip stocks -- just not memory chip stocks. Indeed, WDC's bearish chart was highlighted in this space last week, and it's kept slipping since. MU stock looks like it's on a similar path. * Fundamentally, MU stock is cheap enough if earnings are at a bottom. But there's some indication that memory pricing isn't set to revert quite as quickly as bulls hope. The recent weakness in Micron stock may be a reflection of that realization, and it might be a harbinger of more disappointment ahead. International Paper (IP)Source: Provided by Finviz There have been quite a few beaten-down potential value names like International Paper (NYSE:IP) that have rallied of late. AT&T (NYSE:T) might qualify, even if its rally admittedly began in December. IBM (NYSE:IBM) has had a few bounces. Kohl's stock gained nicely before wiping out after earnings this week. Rite Aid (NYSE:RAD), which had fallen over 90% in three years, has almost doubled from summer lows.There are other examples as well that show what looks like a shift from growth to value that began in late August. But many of those names have weakened of late, and the second of our big stock charts suggests IP might be next: * IP stock stalled out before returning to past highs at $48, creating a narrowing wedge pattern of lower highs. Shares now are below the 20-day moving average, with the 200DMA and 50DMA next up. * Click to Enlarge Source: Provided by Finviz Moving out to the weekly chart, the same trend seems to hold. IP stock remains in a downtrend that commenced at the beginning of last year. * Fundamentally, IP stock admittedly looks more attractive. The forward price-to-earnings multiple looks cheap at under 12x. A 4.6% dividend yield could draw income investors, particularly with 10-year Treasuries yielding under 2%. * But these high-dividend value stocks too often have been value traps in this market. IBM and KSS have provided negative total returns over most holding periods. Even AT&T stock has underperformed the market including dividends and the recent rally. It does seem like stocks like IP drew in investors looking for value at the end of the summer -- and that those investors may have realized that a cheap multiple and a high dividend alone aren't enough. There's some evidence in the chart that IP may resume the downward trend of other potential yield traps. Electronic Arts (EA)Source: Provided by Finviz The range keeps narrowing for video game developer Electronic Arts (NASDAQ:EA). That usually suggests a breakout in one direction; at the moment, the third of Friday's big stock charts does lean bullish, but the fundamentals raise some concern: * EA stock definitely has a setup that could lead to a bullish breakout. A move back above $100 would break the sideways wedge. Unsurprisingly given trading since February, moving averages are tightly grouped, and they could provide support in coming sessions. Low volume is a concern in terms of expecting anything like a parabolic move higher, but EA stock has ground in the right direction since late July and there's some evidence on that chart to suggest that trend can continue. * At the same time, however, the technicals highlight a fundamental issue: EA stock desperately needs a catalyst, as I wrote this week. Its core franchises all are long in the tooth. 'Battle royale' game "Apex Legends" has disappointed after an auspicious beginning, and the new "Star Wars" game looks well-reviewed but not big enough to move the needle. The fundamentals too don't yet suggest a compelling case for EA stock unless and until something changes. * That said, there are worse plays in this market -- and it's possible that both technically and fundamentally EA stock is in a better position than it might first appear. EA stock is cheap enough to rally. Peers Take-Two Interactive (NASDAQ:TTWO) and Activision Blizzard (NASDAQ:ATVI) both have had breakouts of their own in 2019; Electronic Arts stock might be 'due' to follow. If investors are seeking value in a market just off all-time highs, but worried about weaker names and/or leveraged balance sheets, a stock like EA could be just what they're looking for, with or without a near-term catalyst.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post 3 Big Stock Charts for Friday: Micron, International Paper, and Electronic Arts appeared first on InvestorPlace.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. When Microsoft Corp. co-founder Bill Gates tried to build an experimental nuclear reactor in China, his plan was thwarted by U.S. foreign investment restrictions. At Bloomberg’s New Economy Forum this week, Gates described the scuttled reactor project as “a five-year setback for technology.”A chorus of industry leaders, economists and researchers echoed Gates’ cautionary tale during the event in Beijing. Trade tensions between China and the U.S. have spilled into business and economics in tangible ways, they warned, including a slower pace of technological progress and scientific research. If relations between the two superpowers don’t get back on track soon, “we’re in danger of going back to the dark ages,” said Yahoo co-founder Jerry Yang. “We need to reestablish some level of trust between initiatives that can really promote and benefit the people of two countries.”Open systems will inevitably win out over closed ones, Yang argued. He also cautioned U.S. companies that doing business in China may require some uncomfortable compromises.“The challenge with doing business across countries with different value systems is really starting to be more apparent,” he said. “Foreign companies that choose to operate in China have to face the fact that you have to comply with their rules.”Several Chinese tech company officials said they still wanted to work with American companies and that together, the two countries could further technological progress. “We’re in the 5G era, let’s not go back to the 2G or 3G era, where we had different standards,” said Lenovo Chief Executive Officer Yang Yuanqing.Cooling political relations between Washington D.C. and Beijing have slowed international collaboration. In May, the U.S. subjected Huawei Technologies Co. to a variety of sanctions, citing security concerns. The company and other Chinese tech sector boosters believe the move was motivated more by fear of China’s rising influence over fifth-generation networking gear and artificial intelligence.Huawei is Micron Technology Inc.’s largest customer, and on Thursday in Beijing, Micron CEO Sanjay Mehrotra told Bloomberg TV that the company has no plan to move U.S.-based manufacturing out of the country to facilitate supply to China.Mehrotra was one of more than a dozen top tech company executives to attend the two-day forum, which was organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News. Most were cautiously optimistic that one way or another, tech companies would find a way to work across borders.It’s important to differentiate between the stance of the U.S. government and that of industry, said Parag Khanna, Managing Partner at FutureMap. “There’s always been a ‘silicon curtain’ when it comes to social media for U.S. companies,” he said, referring to the separate ecosystems that have developed in the U.S. and China. “But on hardware side, that’s the last thing they want.”He said the head of supply chain at a major U.S. semiconductor supplier told him recently that they “don’t have a plan B for international revenue and access to a large important market like China. We have to find a way to keep selling to China.”Zhu Min, chairman of the National Institute of Financial Research at Tsinghua University, put a finer point on it. Chinese imports accounted for about 65% of the $480 billion global chip market, he pointed out. “If trade friction stops chip exports to China, I think the whole global chip industry will break down,” Zhu said.While global business leaders may want to sidestep the political and trade tensions and simply get back to making money, that no longer seems possible, said Diana Choyleva, chief economist at Enodo Economics.“This is about a clash of ideology in terms of how the different systems view the internet, data, privacy and digital governance,” she said. “Whoever wins the technology race will be the global dominant power.”A growing digital divide threatens to be expensive, as companies spend more on their own technological independence and compensate for the limitations of their domestic markets, said Hong Chen, CEO of the Hina Group, a Beijing-based advisory and private equity firm.“But it also creates opportunities,” he said. Huawei, for example, might not have built its own mobile operating system if it knew it could rely on Google’s Android operating system. American sanctions were “a wake up call,” he said, spurring Huawei to create its own operating system that now attracts a whole new generation of app developers.For smaller companies without Huawei’s deep pockets, the opportunities are more constrained. Spencer Deng, a co-founder of robotics startup Dorabot, which is backed by Kai-Fu Lee’s Sinnovation Ventures, said he built his business on the premise of unrestricted, cross-border trade.“A separate supply chain will create a slower movement of goods,” he said. “That causes a slowdown for business and it’s not good for anyone.”\--With assistance from Colum Murphy and Gao Yuan.To contact the reporter on this story: Shelly Banjo in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Janet Paskin, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
When growth stocks break out, then pull back all the way to the correct buy point, should you bail? Is the stock a dud? Not always. A base on base may form.