Seizing the Tech Rebound: Strategic Entry Points in U.S. Tech Stocks Amid U.S.-China Trade Truce

The U.S.-China trade truce announced on May 12, 2025, marks a pivotal shift in the tech sector’s trajectory. With tariffs reduced from a prohibitive 145% to 30% for U.S. imports and retaliatory measures pared back to 10%, the playing field for tech giants exposed to China’s market and supply chains has suddenly widened. This is no mere pause in hostilities—it’s a window to capitalize on valuation rebounds, restore revenue visibility, and unlock pent-up demand. For investors, the question isn’t if to act, but which tech stocks to prioritize. Here’s how to position for the next leg of the rally.

Broadcom (AVGO): AI Chip Leader Poised for a Turnaround

Broadcom’s AI chip business, a cornerstone of its $30 billion semiconductor division, faces an immediate inflection point. The 90-day tariff truce slashes costs for Chinese data centers and cloud providers—key buyers of its Tomahawk and Jericho chips—which had been hit by prohibitive 145% duties. With supply chains unchoked, Broadcom’s gross margins, which dipped to 52% in Q1 2025 from 60% in 2024, could rebound sharply.

The catalyst? A $2 billion AI chip order pipeline from Chinese hyperscalers, now executable without prohibitive tariffs. Broadcom’s stock—down 20% YTD due to trade fears—could retrace quickly.

Nvidia (NVDA): The Trade Truce’s Silent Winner

Nvidia’s dominance in AI infrastructure positions it to capitalize on the truce’s supply-side benefits. The 90-day tariff reduction eases costs for Chinese customers deploying its H100/H800 GPUs, which power everything from autonomous vehicles to generative AI. Crucially, the truce also halts the threat of China’s retaliatory tariffs on U.S.-made semiconductors, which had risked derailing its $10 billion+ annual revenue from the region.

Look for Q3 2025 guidance to reflect stronger-than-expected AI sales. With its AI data center revenue up 45% YoY in Q1, the truce adds fuel to a roaring fire.

Amazon (AMZN): Retail’s Truce Beneficiary, Underappreciated by the Market

While Amazon’s headline growth grabs headlines, its China-facing operations—from AWS cloud services to cross-border e-commerce—were collateral damage in the tariff war. The truce now allows AWS to price competitively against Alibaba’s AliCloud, while its retail arm gains leverage over Shein and Temu, which relied on tariff-induced U.S. market share grabs.

A **** shows Amazon’s 2025 rebound potential. Its $15 billion in China-linked revenue (including AWS) could grow 15–20% by year-end, reversing 2024’s 5% decline.

Apple (AAPL): Manufacturing Stability and Services Resilience

Apple’s reliance on China’s supply chains—90% of its iPhones are assembled there—makes it a prime beneficiary of tariff relief. The 90-day truce removes the risk of a $50–$100 tariff-induced iPhone price hike, preserving its margin on the $1,000+ iPhone 16. Meanwhile, its services division (Apple Music, App Store), which faces no tariffs, could see a 10% revenue boost from pent-up demand in China’s app market.

However, risks linger: services revenue growth slowed to 5% YoY in Q1 due to China’s iOS adoption lag. Investors should demand evidence of stabilization by Q3.

The Case for Immediate Action: The Truce’s Hidden Durability

Bearish skeptics argue the truce’s 90-day window is too short to justify buys. But this misses three key dynamics:
1. Negotiations Matter: The U.S. and China have 90 days to resolve core issues (fentanyl, tech IP, rare earths), and even partial progress could extend the truce.
2. Market Underestimation: Analysts still price in 50% tariffs for 2026, creating upside for companies like Broadcom and Nvidia.
3. Supply Chain Inertia: Once factories restart and logistics normalize, costs won’t snap back even if tariffs resurge later.

Risks: The Cloud on the Horizon

• Apple’s Services Slowdown: If China’s iOS user base stagnates, AAPL’s growth thesis weakens.
• Tariff Baseline Persistence: The retained 10% tariffs and non-tariff barriers (e.g., rare earths controls) could limit gains.
• Global Recession Fears: A slowdown in consumer spending could offset trade truce benefits.

Conclusion: Buy the Dip, Ignore the Noise

The trade truce is less about a permanent peace and more about a 90-day runway to reprice assets. For Broadcom, Nvidia, Amazon, and Apple—each with sector-specific catalysts—the risk/reward skew decisively favors buyers now. The market’s focus on short-term tariff expiry misses the bigger picture: supply chains are reopening, and tech stocks are priced for a trade war that’s now paused.

Investors who wait for “certainty” will miss the rally. The time to act is now—before the truce’s true beneficiaries are fully recognized.

Positioning for the rebound? Focus on these four names—your portfolio won’t look back.