The financial world has been waiting in suspense all week.
Tomorrow, Dec. 15, the next round of tariffs on China was to kick in.
An event everyone hoped could be avoided with the so-called Phase One trade deal.
As we approached the 11th hour, hopes were dissipating. Then rumors emerged that an agreement was near completion.
Trump would suspend tariffs on an additional $160 billion worth of goods.
In exchange, Beijing would promise to purchase $50 billion in U.S. agricultural products. Double the amount it bought in 2017, before the trade rift began.
This could be the first step toward the resolution of a trade war that has the global economy in disarray.
Meaning stocks are about to receive a significant boost.
Here are three in particular that will benefit…
Trade Deal Stock To Buy #1: Apple (AAPL)
Apple is on a tear this year.
Stocks of the largest private company in the world are up by a staggering 72%.
And that’s despite the fact that Apple is one of the companies most hurt by the trade war.
The technology giant generates 20% of its sales from China, and the latest numbers show that iPhone shipments to the Asian nation dropped by 35% in November.
Nonetheless, Apple is a fundamentally robust company with an attractive long-term outlook.
It has a great core product in the iPhone, which I see continuing to dominate the smartphone market for years.
I also believe that Tim Cook is a capable CEO, despite the criticism he receives. Sure, he’s no Steve Jobs, but, under his leadership, Apple is doing better than ever.
And with the trade situation making a turnaround, the company is poised to receive a significant boost to its revenues and its stock price.
Trade Deal Stock To Buy #2: Nvidia (NVDA)
Another Silicon Valley giant to consider is Nvidia.
The company is a leading producer of graphics processing units (GPUs), which it sells to gaming and professional markets.
Moreover, the company recently reported robust demand from data centers and artificial intelligence developers.
Unfortunately, though, 56% of Nvidia’s revenue comes from one place—China.
As a result, its revenues have been in a continuous decline for the last year.
Although this caused investors to avoid Nvidia during the first half of the year, its stock price recuperated somewhat after the announcement of the Phase One trade deal in October.
With the agreement nearly finalized, I expect Nvidia to continue on its upward trajectory and to return to its 2018 highs of almost $300 per share.
Trade Deal Stock To Buy #3: Skyworks Solutions (SWKS)
Another exciting name from the technology sector is Skyworks Solutions.
The Massachusetts-based company manufactures semiconductors that enable wireless connectivity on devices such as smartphones.
A significant part of its production consists of 5G chips, which it supplies to companies like Apple, Huawei, and Samsung.
With 5G coming online in 2020, Skyworks Solutions looks like an excellent investment.
However, what makes Skyworks particularly interesting in the current environment is that it generates 83% of its revenues from China.
Meaning this is another company that will profit tremendously from the de-escalation of the U.S.-China trade war.
After rumors of the tariff delay emerged on Thursday, the stock immediately jumped 2.01%.
I think this is only the beginning and that Skyworks is still trading below where it should be.