China’s “stalling” economy is putting some US companies at risk, according to Bank of America.High rates of youth unemployment and recent property defaults have put pressure on the Chinese economy.The bank highlighted the top 10 stocks that have the most revenue exposure to China. Loading Something is loading.
Thanks for signing up!
Access your favorite topics in a personalized feed while you’re on the go.
China’s economy has been floundering since it reopened from the COVID-19 pandemic, and that represents a big risk for US companies that have a lot of exposure to the region.
Elevated rates of youth unemployment and recent property developer defaults are just a couple reasons why China’s economy has been “stalling” in recent months, according to Bank of America.
The bank doesn’t think China represents a big risk for the US stock market, given that the S&P 500’s direct China revenue exposure is less than 5%. But it did highlight companies that are overly exposed to the region.
“Investors are waiting for a policy response from China,” BofA’s Savita Subramanian said in a Thursday note. But so far, China’s stimulus efforts have had little impact in turning around the economy.Â
These are the 10 companies that are most at risk of China’s ongoing economic slowdown, according to Bank of America.
10. Applied Materials
Applied Materials’ new corporate signage photo in Santa Clara California Reuters Ticker: AMAT
Market value: $122.6 billion
Revenue exposure to China: 33%
9. Lam Research
Markets Insider Ticker: LRCX
Market value: $89.5 billion
Revenue exposure to China: 35%
8. Broadcom
Reuters Ticker: AVGO
Market value: $373.8 billion
Revenue exposure to China: 36%
7. NXP Semiconductors
REUTERS/Steve Marcus Ticker: NXPI
Market value: $51.5 billion
Revenue exposure to China: 38%
6. IPG Photonics
Markets Insider Ticker: IPGP
Market value: $4.9 billion
Revenue exposure to China: 38%
5. Wynn Resorts
FILE PHOTO: Wynn Resorts Ltd property in Las Vegas Reuters Ticker: WYNN
Market value: $10.7 billion
Revenue exposure to China: 40%
4. Western Digital
360b/Shutterstock Ticker: WDC
Market value: $13.7 billion
Revenue exposure to China: 47%
3. Monolithic Power Systems
Markets Insider Ticker: MPWR
Market value: $24.0 billion
Revenue exposure to China: 58%
2. Qualcomm
A Qualcomm sign is seen at the second China International Import Expo (CIIE) in Shanghai Aly Song/Reuters Ticker: QCOM
Market value: $117.8 billion
Revenue exposure to China: 67%
1. Las Vegas Sands
he Sands casino and hotel is seen in Macau October 31, 2009. Las Vegas Sands Corp, which is expected to launch a public offering of its Macau operations in November, posted a net loss of $123 million, or 19 cents a share, compared with a year-earlier loss of $32.2 million, or 9 cents a share. Picture taken October 31, 2009. Reuters Ticker: LVS
Market value: $38.2 billion
Revenue exposure to China: 67%
Other companies that have considerable revenue exposure to China include: Intel (27%), Tesla (26%), and Nvidia (26%).