Profit-Forecasting Chaos Sows Risk as Tech Analysts Wait and See

Wall Street analysts have yet to dramatically cut estimates for tech-company earnings as US tariffs threaten to upend the industry, sowing widespread doubt over whether stock valuations have come down enough or prices have further to fall.

While President Donald Trump’s trade war — and escalating tensions with China — dampen the outlook for corporate profits, the White House’s rapid policy reversals have made it virtually impossible to gauge the potential impact. That was thrown into relief over the weekend, when the administration exempted smartphones, computers and other electronics from its latest tariffs. The change would have been a boon for companies like Apple Inc. and Nvidia Corp., but the optimism dissipated swiftly as Commerce Secretary Howard Lutnick said it was a temporary move that would be followed by specific levies on the industry.