5 American Stocks with High Exposure to China

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) has the highest exposure to China among the big tech firms. According to Markets Insider, roughly 75%-80% of Apple Inc. (NASDAQ:AAPL)’s product sales are attributed to China and 60%-62% of its products are manufactured in China. Additionally, 18% of the company’s annual revenue is made in Greater China. 

On August 19, KeyBanc analyst Brandon Nispel raised the price target on Apple Inc. (NASDAQ:AAPL) to $185 from $177 and maintained an Overweight rating on the shares. The analyst recommends owning Apple Inc. (NASDAQ:AAPL) and lifted the price target “based on strong trends”. Keybanc’s data “rapidly rebounded” after the firm’s weak results in April through June, the analyst told investors. July is seasonally the strongest growth month of Apple Inc. (NASDAQ:AAPL)’s fiscal Q4, which seems to be off to a robust start, added the analyst.

According to Insider Monkey’s data, 128 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q2 2022, compared to 131 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with almost 895 million shares worth $122.3 billion. 

Here is what Wedgewood Partners has to say about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:

“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

You can also take a look at 10 Important Energy Stocks Making Moves After Earnings and Best Defensive Stocks Under $50. 

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