Recent changes in President Trump's trade policy have led to a focus on restoring market confidence, benefiting stocks of companies like Dell and KLA.
President Trump and Trade Policy
President Trump has made it clear that firing Fed Chair Jerome Powell is not on the table. His newly conciliatory stance on tariffs suggests a significant reduction in tariffs on imports from China, although a complete elimination is not anticipated. This easing has already reflected positively on the S&P 500, which rose by 2.4% in a day.
Dell Technologies: Opportunities and Challenges
Dell’s stock has declined about 21% over the past three months, currently priced at $90.74 per share. The company ranks third in global PC shipments and is actively developing AI solutions in collaboration with Nvidia. However, high integration into China's supply chain makes Dell vulnerable to tariff escalations. The company has consistently exceeded earnings estimates, typically by 4%. The next earnings report is due on May 29, giving some time for public sentiment to improve regarding tariffs.
KLA Corporation: Leaders in Semiconductor Manufacturing
KLA's stock is down nearly 13% over the last three months, currently priced at $660.81 per share. The company plays a vital role in quality control tools for semiconductor manufacturing. In the latest earnings report for fiscal Q2 2025, KLA reported $3 billion in revenue, investing significantly into research and development. Given the current stock price, KLA is trading below the average price target of $805.96 per share, indicating a positive market perception.
The reduction of tariff pressure in trade relations with China may strengthen Dell and KLA's positions. Both assets present opportunities for investors seeking potential growth after negative forecasts.
