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Barron's On: The New Cold War in Tech

Barron's On: The New Cold War in Tech
  • This weekend's Barron's cover story looks at the new cold war brewing in big tech.
  • The battle for tech supremacy between the United States and China could last for years.
  • From the tech stocks hit hardest to those becoming attractive, read ideas on how to invest now.

This weekend's Barron's cover story, "The Cold War in Tech" by Reshma Kapadia, suggests that while investors cheer the progress made toward a resolution of trade issues between the United States and China, the battle for tech supremacy between the two global superpowers shows few signs of abating.

A prominent tech CEO quoted in the article describes the current climate as "one of the more complex macro [and] geopolitical environments that I think we've seen in quite a while with all the different moving parts." This is a fight that is likely to get worse and will not end anytime soon, according to the story — and even a resolution of the trade war won't quell the fears.

See also: Barron's Picks And Pans: Apple, Altria, Micron Technology, Nvidia And More

Barron's spoke to policy watchers, fund managers and industry analysts to find out which stocks are already feeling effects from this tech battle. Among the hardest-hit: semiconductor stocks such as Broadcom Inc (NASDAQ: AVGO) and Micron Technology, Inc. (NASDAQ: MU) that remain highly reliant on China.

On the other hand, competitors of embattled Huawei, such as Cisco Systems, Inc. (NASDAQ: CSCO) and Nokia Oyj (NASDAQ: NOK), could benefit. And see why Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM), the world's largest semiconductor manufacturer, might be the "Switzerland" of this technology cold war.

Find out what the prospects for Chinese players such as Alibaba Group Holding Ltd (NYSE: BABA) and Baidu Inc (NASDAQ: BIDU) not to mention China's 124 unicorns — may be and what could make them attractive investments in the tech cold war.

U.S. President Donald Trump and Chinese President Xi Jinping at the G20 summit in 2017. White House photo by Shealah Craighead. 


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