Micron, Broadcom, ON Semi seen as 'most at risk' from tariffs: Citi
Apr. 03, 2025 7:11 AM ET
By: Chris Ciaccia, SA News Editor
Following President Trump's tariff announcement that sent shockwaves across the global economy, including the tech industry, Citi said the shares of Micron Technology (NASDAQ: MU), On Semiconductor (NASDAQ: ON), Broadcom (NASDAQ: AVGO) and GlobalFoundries (NASDAQ: GFS) are the “most at risk.”
“We believe the companies most at risk are low-margins stocks such as ON, Micron and GlobalFoundries given more margin volatility and high-multiple stocks such as Broadcom as multiples compress,” analyst Christopher Danely wrote in a note to clients.
Micron shares fell 6.6% in premarket trading, while Broadcom, On Semiconductor and GlobalFoundries fell 6%, 4.4% and 3.4%, respectively. The list of products being hit with a tariff exempts semiconductors.
If the tariffs, which Danely said are “convoluted and virtually impossible to assess completely given the length and geographic diversity of the semi supply chain,” cause a recession, all semiconductor stocks could be hit and result in at least 20% or more downside.
“If the tariffs continue for another month, we believe is it highly likely the supply chain will 'freeze up' given uncertainty, drastically lower order rates/inventory, and result in lower guidance across the board – similar to COVID,” Danely explained. However, there could be a “sharp rebound” once the supply chain and tariffs become more stable and predictable, also similar to COVID, he added. |
