President Donald Trump has practically “blacklisted” Chinese telecommunications giant Huawei and made it crystal clear that he does not want American companies doing business with the country, CNBC’s Jim Cramer said Thursday.
That tanked the shares of a group of chipmakers — Qualcomm, Skyworks Solutions, Broadcom, Micron, and Xilinx — as much as 7.3%, he argued.
“Huawei has the best technology for the 5G wireless infrastructure build-out, but without components from American suppliers, that technology just doesn’t work. They’re gonna get beat,” the “Mad Money” host said. “It could be the end for Huawei’s 5G leadership. That’s a huge blow to this pioneering company that many in the industry actually feel is nothing but an arm of the [Chinese] Communist Party.”
On Wednesday, the Trump administration made a national emergency via executive order to regulate any business dealing with information or communications technology that “poses an unacceptable risk to the national security of the United States.” The move bans American businesses from buying equipment from Huawei and requires a special license to sell components to the company, Cramer highlighted.
The semiconductor exchange-trade fund, which tracks chip stocks, slid 1.4%.
More at https://tinyurI.com/y4zkq6zd
That tanked the shares of a group of chipmakers — Qualcomm, Skyworks Solutions, Broadcom, Micron, and Xilinx — as much as 7.3%, he argued.
“Huawei has the best technology for the 5G wireless infrastructure build-out, but without components from American suppliers, that technology just doesn’t work. They’re gonna get beat,” the “Mad Money” host said. “It could be the end for Huawei’s 5G leadership. That’s a huge blow to this pioneering company that many in the industry actually feel is nothing but an arm of the [Chinese] Communist Party.”
On Wednesday, the Trump administration made a national emergency via executive order to regulate any business dealing with information or communications technology that “poses an unacceptable risk to the national security of the United States.” The move bans American businesses from buying equipment from Huawei and requires a special license to sell components to the company, Cramer highlighted.
The semiconductor exchange-trade fund, which tracks chip stocks, slid 1.4%.
More at https://tinyurI.com/y4zkq6zd
