The US–China trade tensions could encourage China to accelerate its domestic chip production. AMAT investors are concerned that if China accelerates its domestic chip production, it could negatively impact its equipment sales worldwide.
However, some analysts believe that investors are overreacting to the noise, as the trade war hasn’t yet started. Even if China produces chips domestically, it’s far behind its multinational rivals and is unlikely to become competitive with them anytime soon.
Next, we’ll look at industry-specific and company-specific risks and how they impact AMAT’s stock price.
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View more information: https://marketrealist.com/2018/05/the-impact-of-us-china-trade-tensions-on-applied-materials-stock/