US–China deal is a 'dream scenario' for Apple and Nvidia

00:00 Speaker A

Big Tech stocks starring marketplace gains contiguous with the NASDAQ 100 officially wiping retired year-to-date losses. The magnificent 7 adding much than $800 cardinal successful marketplace worth pursuing the woody betwixt the US and China to temporarily trim tariffs. Joining america present with more, Dan Ives, Wedbush Securities planetary caput of exertion research. Dan, large to person you, arsenic always. I cognize you accidental this truce is the champion lawsuit scenario. Which tech banal is the biggest victor wrong that scenario?

00:29 Dan Ives

I deliberation it's Apple and Nvidia. I mean, if you look astatine this, that was the achromatic cloud, right? I mean, the proviso concatenation bosom and lungs are successful China. And, and arsenic overmuch arsenic you tin speech astir moving to India and others, this is simply a immense suspiration of relief. And, and I deliberation it changes our presumption that, you know, caller highs for tech, caller highs for the market, present connected the array aft what we conscionable presumption arsenic a imagination script happened this weekend.

01:08 Speaker A

Well, Dan, let's speech astir Apple a small bit. I cognize you had a telephone for a $3,500 iPhone if accumulation was brought backmost to the United States. What's your telephone connected the terms of an iPhone today?

01:21 Dan Ives

Look, it comes down to. I mean, they're, they're going to person to conflict not to rise prices. If you actually, they don't get exemptions and you really support immoderate benignant of tariff successful erstwhile it comes to, to China. Look, it, it each comes down to the world is iPhones request to beryllium made successful China. Some tin beryllium made successful India. They tin ne'er truly beryllium made successful the US, due to the fact that if you privation them made successful the US, the terms points would fundamentally beryllium monolithic request demolition connected time one. And it would instrumentality 4 to 5 years to adjacent physique 10% of that successful the US. So that's wherefore our full constituent implicit the last, called six weeks was, let's speech world versus fairy tale. And the world is, is that iPhones volition proceed to beryllium built successful China with immoderate being built successful India.

02:51 Speaker A

How bash you suss retired the world versus a dialog successful a framework, a reasoning of a woody erstwhile determination isn't needfully clarity yet connected the extremity of these tariffs?

03:08 Dan Ives

Look, I deliberation ultimately, they're some playing poker. And particularly U.S. They look astatine their hand, it's not a bully hand, right? And I deliberation they had to determination further and further backmost from the cliff successful presumption of what we saw with the hold of the reciprocal. And obviously, erstwhile it came to China, due to the fact that the cargo information doesn't prevarication and the terms points doesn't lie. And immoderate CEOs are saying publicly, down closed doors, what they're telling the White House is, you request to change, request to move. So our presumption is, like, adjacent erstwhile it comes to the 30%, I mean, that's astir apt the precocious bar. It goes to what called a reciprocal 15%, 20%. Once you enactment astatine WTO IP and each the different issues are going to person to get worked retired successful the adjacent year. But you don't privation a decoupling erstwhile it comes to AI revolution. And I deliberation this was, you know, a imaginable achromatic swan infinitesimal that was self-created that's nary longer there.

04:42 Speaker A

And Dan, I guess, has Lou Basanez has a question for you.

04:46 Lou Basanez

So, Dan, I conscionable privation to speech to you much astir Apple. I consciousness similar earlier successful the show, I said, this clip of year, everyone gets a spot antagonistic connected Apple. How disquieted are you astir terms sensitivity, right? I mean, the user is ace loyal to Apple, 2.5 cardinal devices retired there. You got a batch of subsidies. Does it truly substance if the iPhone terms is simply a small spot higher than, than it was expected? I mean, bash you truly deliberation that impacts demand?

05:17 Dan Ives

Yeah, no, it's a large question. Look, I mean, the past happening Apple wants to bash is, is rise prices. And they've kept prices fundamentally the same. The crushed that is, is due to the fact that you person called 300 cardinal iPhones that haven't upgraded successful 4 years. So if, adjacent if it's 3%, 4%, 5% of that, that whitethorn beryllium delayed for a twelvemonth due to the fact that of a $100 increase, oregon lone $150. That's not what Apple wants, but they're beholden to their proviso chain. But erstwhile it comes to going to WWDC and iPhone 17, and evidently AI, I mean, this is simply a cardinal play for them to really spot maturation successful presumption of precocious azygous digit, treble digit growth, which is evidently evaded, you know, successful presumption of the Apple communicative implicit the past fewer years.

06:39 Lou Basanez

Dan, 1 speedy travel up. Earlier successful the show, I said that MAG 7 was a lad set similar NSYNC that's breaking up. Who would beryllium your? And I emotion NSYNC. I emotion NSYNC. Yeah, look, who would beryllium your Justin Timberlake though for breakout? You said Apple and Nvidia. If you had to prime 1 for the champion breakout for investors close now, which 1 are you astir optimistic astir connected the aftermath of these commercialized truce?

07:15 Dan Ives

If determination was similar a, if determination was similar a Timberlake portion of the NSYNC breaking out, it would person to beryllium Nvidia. I mean, and look, Jensen, we, we'll spot what happens with the achromatic leather overgarment if helium had to, you know, marque it to beryllium a lad band. But look, I deliberation the world is, is that I deliberation it makes each new, caller all-time highs due to the fact that there's lone 1 vessel successful the satellite fueling the AI gyration and that's led by godfather of AI, Jensen Nvidia.