Three Technology Stocks Stand out Despite Tariffs

Three technology stocks stand out despite tariffs with buy recommendations from savvy stock market sleuths.

Those three technology stocks stand out despite tariffs due to their distinctive product lines, niches and prospects in the face of trade conflicts between the United States, China, Europe and others. Investors who seek to seize the opportunity to profit from a recent pullback in stock prices, particularly in the technology industry, now have the opportunity.

A looming question is whether further fallout to the market could occur if short-term pauses in implementing tariffs between countries end and trade wars ensue. China, in particular, seems to be resistant to negotiating with President Trump rather than escalating it into a war trade with the deal-making president of the United States who is well known for his real estate empire.

Three Technology Stocks Stand out Despite Tariffs: Gilder’s Guidance

President Trump agreed to give 150 countries a 90-day reprieve from stiff new tariffs to allow time to negotiate new trade deals. However, China’s leaders chose to escalate a budding trade war with United States by taking turns boosting tariffs against each other rather than opting, as many other foreign leaders have done, to seek a compromise.

Even though technology stocks generally were hit hard as tariffs and economic concerns among consumers and business leaders alike arose, the top companies may offer investors a chance to ride a rebound. Seek companies well ahead of the pack and built to widen the lead with each lap of innovation, said George Gilder, who heads the Gilder’s Technology Report investment newsletter and the Gilder’s Moonshots advisory service.

“Technology leaders will pull away like Secretariat in the homestretch at the Belmont; also-rans will fade like Sham, the next-best horse during the 1973 racing season,” according to Gilder’s Technology Report.

Paul Dykewicz poses with George Gilder, who heads Gilder’s Technology Report.

Three Technology Stocks Stand out Despite Tariffs: AVGO

Palo Alto, California-based Broadcom Inc. (NASDAQ: AVGO) is a global infrastructure technology company that has devoted its more than 60 years of existence to bring its customers innovation, collaboration and “engineering excellence,” its officials said. Broadcom focuses on technologies that connect the world through brands such as LSI, Brocade, CA Technologies, Symantec’s enterprise security business and VMware.

The company seeks to deliver technology and category-leading semiconductor and infrastructure software solutions. It also combines global scale, a broad product portfolio and operational focus to provide its customers with semiconductor and infrastructure software to build and grow successful businesses.

Even better news for bargain-hunting investors is that Mark Skousen, PhD, who heads the TNT Trader service with his son Tim Skousen, views Broadcom as “oversold,” and recommended it in his advisory service. The elder Skousen, a free-market economist, Presidential fellow at Chapman University and the head of the Forecasts & Strategies investment newsletter, also has been named one of the top 20 living economists in the world (www.superscholar.org).

“Demand for its semiconductors has stayed high in the midst of growth in the AI sector and dealing with the trade war,” according to the April 15 edition of TNT Trader.

Broadcom’s financial performance looks great, TNT Trader reported. The company has a price/earnings-to-growth (PEG) ratio of 0.47, while anything below one is bullish. Broadcom’s forward-looking price-to-earnings (P/E) ratio is around 28. And its sales growth is expected to be 19% for this quarter, 21% for 2025 and another 16% in 2026.

Mark Skousen, head of Forecasts & Strategies and TNT Trader, meets with Paul Dykewicz.

Broadcom has consistently beaten earnings, which were revised upwards over the last 60 days. That always is a bullish sign, according to TNT Trader.

While Trump’s trade conflicts threaten a global recession, Broadcom is more protected on the downside than other companies right now, TNT Trader reported.

Chart courtesy of www.stockcharts.com

Three Technology Stocks Stand out Despite Tariffs: Connell’s Counsel

As a former semiconductor analyst, Michelle Connell, who heads Portia Capital Managment in Dallas, said the company’s recent announcement of its $10 billion share buyback caught her attention. The company is willing to commit over half its yearly free cash flow to buying back its shares, she added.

“I think that says a lot,” Connell counseled. “The company has always been solid and adapt at pivoting as technology evolves. Broadcom’s AI product offerings prove that the company is becoming formidable in this technology as well.”

According to the semiconductor analysts who follow the industry 24/7, Broadcom is a competitor in the XPU chip market. XPU chips may become an less expensive alternative to Nvidia GPUs that currently own the AI accelerator market. If Broadcom’s  XPU chips become more widely used, the revenues from these chips could far outweigh the effects of potential tariffs, Connell continued.

While Broadcom sources 90% of their chips from TSMC, there are two factors that could make this less punitive, Connell counseled. First, Broadcom has formed a joint venture with TSMC which may provide tariff workarounds. Second, TSMC is evaluating the establishment of front-end chip production for its US customers via Arizona facilities (chip fabrication). These potential actions could help Broadcom minimize the cost of tariffs.

“As of last quarter’s earnings, AI related sales represented almost 25% of Broadcom’s total revenue,” Connell said. I would expect this percentage to continue rapidly grow. In addition, the company’s VM Ware revenue has become more consistent and stronger due to a 60% conversion to a subscription-based model. Previously, there had been some concern regarding this product group.”

Three Technology Stocks Stand out Despite Tariffs: PLTR 

Denver-based Palantir Technologies (NASDAQ: PLTR) is holding up reasonably well and even surged during the past week. Palantir is up more than 21.49% in just a week since its recommendation on April 8. Not only is Palantir a software company that operates outside of the tariff problem, but it also announced a deal with NATO, supplying it with its Maven AI software.

The stock also is a recommendation of the Investing Edge newsletter led by Jim Woods, a former Army officer. The stock is up more than 30% since its January buy recommendation.

Jim Woods heads the Investing Edge newsletter and Bullseye Stock Trader.

Palantir’s partnership with the U.S. Army began in 2008 to design and deploy modern mission software with improved capabilities. The company’s solutions are used across nearly every Army mission, ensuring data is accessible for fast decision-making that allows the warfighter to out-think and out-pace the adversary, Palantir officials said.

Palantir seeks to operate as the “connective tissue” between Army personnel, data and resources by delivering critical information to the key decision-makers when needed, company officials stated. It enhances the preparedness of soldiers who use wearable sensor and mobile technologies in the battlefield.

However, the immense amount of data produced risks overwhelming both the individual soldiers and the battlefield decision-makers who lead them. Palantir tries to harness hardware solutions, reduce system complexity and provide improved human-machine interfaces to aid soldiers in the field and commanders at a forward-operating base (FOB). Situational awareness powered by visual augmentation, sensor optimization and secure capabilities helps to reduce cognitive challenges, as well as to protect and to connect warfighters.

Those who remember the U.S. special forces locating al-Qaeda founder Osama bin Laden‘s compound in Abbottabad, Pakistan, where he was killed on May 2, 2011, may be interested to know that a Palantir software product called “Gotham” was rumored to have been used by counterterrorism analysts at U.S. government agencies to integrate and analyze data. The information could have included intelligence reports, surveillance and reconnaissance.

Woods, who recently launched the Investing Edge newsletter, is a former Army officer and combat veteran who tracks the defense industry closely. When it comes to military operations, aggression, manpower and firepower still require the right intelligence to win battles, Woods said. Palantir is a star performer in the Top 10 Growth Accelerators portfolio of Investing Edge.

“What Palantir does so well is provide the right intel,” Woods continued.

Intelligent ground systems are at the heart of the Army’s realization of a multi-domain operations concept, Palantir officials said. To empower commanders to make sense of a complex battlefield, ground systems are a key to aid understanding.

Chart courtesy of www.stockcharts.com

Three Technology Stocks Stand out Despite Tariffs: HON

Honeywell International Inc. (NASDAQ: HON), of Charlotte, North Carolina, operates businesses in aerospace, building automation, industrial automation and energy and sustainability solutions (ESS). The company is one of its favored current recommendations of Citi Research that should fare well as tariffs and retaliatory tariffs torment investors.

Skousen had recommended Honeywell International as one of his Flying Five recommendations in Forecasts & Strategies until July 2024, when he replaced it with IBM.

Honeywell is among the U.S.-based electrical equipment, engineering and construction companies that Citi Research expects to hold an important role in supporting domestic manufacturing activity, while offering relatively good near-term performance and improving “operating rigor” that could help navigate tariff-related turmoil, according to Citi Research.

Chart courtesy of www.stockcharts.com

Honeywell management has expressed a plan to focus on three powerful megatrends – automation, the future of aviation and energy transition – underpinned by its Honeywell Accelerator operating system and Honeywell Forge IoT platform. The company aims to help organizations solve the world’s toughest, most complex challenges, providing solutions and innovations through its Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments. The goal is to make the world smarter and safer as well as more secure and sustainable, its officials said.

The company plans to issue its first-quarter 2025 financial results before the opening of the NASDAQ Stock Market on Tuesday, April 29, for three months ended March 31. Honeywell offers income investors additional appeal with its current dividend yield of 2.2%.

The Flying Five stocks are companies offering above average dividend yields, relatively low price-earnings ratios and a positive profit outlook.

Skousen’s Flying Five typically outperform the market, but there are exceptions. As dividend-paying stocks, they also help to insulate investors from the worst of market downturns like the one taking place right now.

Three Technology Stocks Stand out Despite Tariffs: Geopolitical Risk Rises

Russia armed forces showed their brutality recently by executing four Ukrainian prisoners of war after they surrendered and laid down their weapons.

“Such executions have become systemic, but each one is shocking in its brutality,” wrote Ukraine Ministry of Foreign Affairs spokesman Heorhii Tykhyi on X, formerly known as Twitter.  “These executions not only show that we are dealing with beasts. They also demonstrate that the Russian army is a gathering of degenerates. They lack basic discipline, as disciplined armies do not execute prisoners of war—it goes against military logic. This is a war crime and it must be investigated, including by the International Criminal Court. All perpetrators must be held accountable.

Slovakia’s President Peter Pellegrini called on Sunday, April 13, for the international community to increase pressure on Russia to bring it to the negotiating table rather than keep killing innocent people with missile strikes. As of Sunday evening, April 13, the number of people killed that morning by Russia’s ballistic missile attack on Sumy, Ukraine, during that morning had reached 34, including two children. In total, 117 people were injured, including 15 children.

U.S. special envoy to Ukraine Keith Kellogg said that Russia’s strike on civilian targets in Sumy crossed all acceptable lines and showed why President Donald Trump is committed to ending the war.

Foreign ministers of European Union nations met in Luxembourg for a Foreign Affairs Council on April 14 to discuss security guarantees for Ukraine – including a potential monitoring mission – along with its 17th package of sanctions against Russia, among other forms of pressure.

Aside from military combat there and elsewhere in the world, tariffs add to the tumult. A baseline 10% tariff that went into effect on April 5 and remains in place for all affected imports into the United States. President Trump leadership style is aggressive, but he is expressing a willingness to negotiate with other heads of state. It remains unclear how many of them and which ones will accept his offer to forge trade deals.

Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.