50 Major Companies That Will Likely Fail to Survive Trump's MAGA Economy
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Semiconductor Performance Mixed
Semiconductor stocks are showing particularly strong momentum, though year-to-date performance remains uneven across the sector:
- Nvidia shares have jumped 4.16% to $135.34, pushing the stock back into positive territory for 2025 with a modest 0.78% gain year-to-date. The company's upcoming earnings report on May 28 is viewed as a crucial indicator for the AI sector.
- AMD is trading at $117.72, showing strength but still down significantly from its March high of $187.28. The company recently announced a $6 billion share repurchase program.
- Taiwan Semiconductor (TSM) is trading at $194.76, down 25% year-to-date despite strong Q1 2025 results with triple-digit AI-related revenue growth in its chip business.
Beyond chips, enterprise technology stocks like Salesforce have rebounded on the prospect of continued strong corporate IT spending, while cybersecurity firms like CrowdStrike are seeing renewed interest despite the company's announcement of workforce reductions.
Key Considerations for Investors
Several factors suggest a measured approach to this tech rally:
- The current U.S.-China trade deal is explicitly a 90-day truce rather than a permanent resolution. President Trump has stated that tariffs could go "substantially higher" if a full deal isn't reached during this period.
- Existing AI chip export restrictions to China remain in place, continuing to affect semiconductor companies with significant Chinese exposure.
- The U.S. Commerce Department is still conducting a national security investigation into semiconductor imports that could result in new tariffs specifically targeting chips and electronics.
- Gross margin pressure is affecting even market leaders like Nvidia as competition intensifies in the AI chip space.
Potential Strategies Worth Considering
Based on current market conditions, several approaches may merit consideration:
Focus on supply chain diversification. Companies that have already begun diversifying their manufacturing and supply chains beyond China appear better positioned for potential future trade tensions. Apple shares have gained approximately 6% since the trade announcement despite warning of $900 million in additional tariff-related costs.
Monitor upcoming earnings closely. The upcoming earnings season, particularly Nvidia's report on May 28, will provide crucial insights into how tech companies are navigating the current economic and trade environment.
Balance tech exposure. The current environment may favor a balance between established technology companies with strong cash flows and emerging AI leaders with significant growth potential.
Watch calendar dates. The next 90 days will be critical as negotiations continue. Any signals about the likelihood of a more permanent agreement—or lack thereof—could significantly impact tech stocks.
The technology sector remains at the intersection of innovation and geopolitical tensions. While the initial market response reflected optimism, the temporary nature of the current trade agreement suggests that volatility may continue to characterize tech stocks in the coming months.
