AI Portfolio
Will Monday See a Tech Stock Rally for the Ages? Tesla (Nasdaq: TSLA) Could Be a Big Winnner
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“We could see a tech stock rally for the ages on Monday.”
If you’re a tech investor who has been beaten down over the past two months as technology became the worst-performing sector amid investors feeling risk, that headline is a welcome relief.
It comes from frequent CNBC guest Dan Ives, who leads Wedbush’s technology coverage. Let’s deconstruct why Ives is predicting such a dramatic rally and which stocks could benefit the most.
Key Points
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The Trump Administration announced on Saturday that broad categories of technology products would be exempted from reciprocal tariffs.
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The announcement is broadly positive for technology stocks – and could set the table for a ‘narrative shift’ that could lead to the sector outperforming the rest of 2025.
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Trump Pulls Tariffs on Consumer Electronics
The big news on Saturday is that the Trump Administration is exempting tariffs on consumer goods. As we wrote in an article covering how this news might impact Apple earlier:
However, today the Administration exempted smartphones, computers, semiconductors, solar cells, flat panel TV displays, and other electronics items from these high tariff rates.
That’s important for two reasons:
- First of all, this move could be seen as an ‘olive branch’ of sorts directed at China. The country’s number one export to the United States (22% of its total) is consumer electronics. Those items are now largely exempted from tariffs. That should be broadly ‘bullish’ for stocks as it signals Trump continues to de-escalate the trade war that looked likely last week.
- Second, the removal of tariffs on electronics removes a huge uncertainty for stocks like Apple. For example, just last week Apple reportedly was scrambling to fly 747s across the Pacific filled with iPhones to beat Chinese tariff rates going into effect. The company could move some capacity to India, but not enough to supply the level of demand from the United States.
The news will obviously be great news for companies like Apple with manufacturing in China that faced significant tariffs that are now removed.
However, the bigger picture is that the removal of tariffs on consumer electronics and semiconductors could be beneficial to stocks across technology. As Dan Ives said:
US tariff exclusions will apply to computer, smartphones, and chip making equipment which takes a huge black cloud overhang for now over the tech sector and the pressure facing US Big Tech…. We needed good news before Sunday night on the tariffs/and or China exemptions and here they are. Big Tech (and investors) got their wish.
What Stocks Could Be Up on Monday?
What stocks could see the strongest gains on Monday? Here are some names to watch:
- Apple (Nasdaq: AAPL): We published an earlier article on 24/7 Wall St looking at what kind of returns Apple could see on Monday. Our estimate was that Apple would likely see about a 6% jump. However, anything in a range of 2% to 10% gains seems reasonable.
- Tesla (Nasdaq: TSLA): Is a name you may not expect to be a winner from Saturday’s news that consumer electronics are exempted from tariffs. Yet, the company is heavily reliant on China for results and any lessening of tensions between the United States and China is broadly positive for the company.
- NVIDIA (Nasdaq: NVDA): As we covered in last week’s AI Investor Podcast, NVIDIA’s exposure to tariffs is likely less than most investors expect. A key reason for that is loopholes meant that server racks imported from Mexico didn’t face reciprocal tariffs. Researcher Semi Analysis estimated that tariffs (as calculated before today’s announcement) would add just 2% to the total cost of operating data centers. Yet, the overall ‘narrative’ of Trump pushing favorable legislation for the technology industry could boost NVIDIA’s stock.
Want to Know What Stocks Could Boom from A Tech Rally for the Ages?
Yesterday I recorded an episode of The AI Investor Podcast where I outlined how tariffs are impacting major tech stocks and gave the names of all the tech stocks I’ve been buying in the past week.
If you want to get caught up on what could be the biggest opportunities today, give the podcast a listen. We’ve embedded a link to Apple above or you can listen on Spotify or YouTube.
The Podcast has a perfect 5.0 rating for a reason: every week we’re detailing the most important stories in a trend and giving stock ideas that could see substantial gains if AI becomes the dominant trend of the next decade.
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