In late May, the U.S. Commerce Department added Huawei Technologies to its Entity List, saying they believe Huawei has been involved in activities contrary to the national security or foreign policy interests of the United States and can’t any longer buy components from U.S. companies.
The jab on Huawei was just Trump seeking more leverage in the ongoing US-China trade war saga. Companies, in particular the semis have started to report lower guidance. For example, Nvidia and Intel recently lowered their guidance. The latest company to make an announcement regarding lowered guidance was Skyworks Solutions. However, one company, Quovo, that gets 15% of their revenue from Huawei hasn’t said anything as of yet.
Quovo’s stock price is about 25% off its recent April highs.
However, the chart suggests if things don’t get resolved sooner than later, price will retest the major support-resistance level at $56.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.