Obviously, after President Trump announced that 25% tariffs on Mexico and Canada would go into effect immediately with more on the way for most of the U.S.’s global trading partners, investors are looking for stocks that can still thrive.
Because consumer durable stocks are a natural safe haven, technology stocks are the baby being thrown out with the bath water. The Nasdaq exchange is down over 200 points in morning trading Tuesday and some popular names like SoundHound AI (NASDAQ:SOUN) and Robinhood (NASDAQ:HOOD) are down 10% or more.
It’s going to be trade tariffs all the time that anyone talks about for the immediate future, but that doesn’t mean all tech stocks are alike. Investors still looking for high-growth potential amid global turmoil should seek out stocks with a large domestic focus with resilient business models to add to your portfolio. Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more.
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Tariffs disrupt supply chains, hit export-heavy firms, and raise costs, but some tech stocks are better positioned to thrive. The narrative around “trade-war-proof” tech stocks often assumes software and domestic focus guarantee safety, but it’s not that simple.
A global trade war could still trigger a recession, hitting even software firms through reduced enterprise spending, as seen in past downturns. While these stocks have less direct exposure, they’re not immune to broader market sentiment. There are also risks from global slowdowns, suggesting the “safe haven” label might be overstated. Investors should balance these picks with broader market risks and not assume complete protection.
Still, by focusing on those with domestic focus, resilient business models, or limited exposure to trade war impacts, the three tech stocks below are ones that could actually do well in the current environment.
Accenture (ACN)
Accenture (NYSE:ACN) is the first tech stock to buy in March while blithely ignoring the global trade war. While you really can’t shrug such concerns off so cavalierly, Accenture is a leading IT services firm that has a resilient business model and global reach.
The company focuses on consulting, cloud migration, and AI-driven digital transformation, which aren’t directly tied to physical goods impacted by tariffs like those proposed by Trump on Mexico, Canada, the EU, or China. Its diverse client base spans industries like finance, healthcare, and retail, with no single region dominating revenue. With only 20% of revenue coming from the Asia-Pacific region, Accenture reduces exposure to trade disruptions. Its leadership in generative AI, with $3 billion in bookings in 2024, positions it to capitalize on growing demand for tech solutions.
Analysts are bullish on ACN stock with a “strong buy” rating and there is a consensus one-year price target of $389 per share, implying 16% upside from its current $344 per share level.
Accenture also sports a 1.5% dividend yield, providing investors with a downside buffer. While a global slowdown could slow enterprise spending, Accenture’s $9.2 billion free cash flow ensures it is resilient, making it a solid safe haven investment for investors.
Salesforce (CRM)
The second solid tech stock to buy this month is Salesforce (NYSE:CRM) thanks to its subscription-based software model and domestic focus.
As the world’s leading cloud-based CRM provider, it delivers tools like sales automation and AI-driven analytics that help businesses boost efficiency. That is critical in a trade-war-induced slowdown. Because tariffs hit hardware much more than software, Salesforce’s cloud focus keeps it relatively insulated.
Moreover, about 70% of its revenue comes from the Americas, limiting its exposure to tariff-heavy regions like China. Salesforce is also gaining market share, with 15% revenue growth in 2024, while analysts project steady earnings growth.
CRM stock trades at around $284 per share while Wall Street has a $365 per share price target, indicating nearly 30% upside in the stock.
Although its 0.5% dividend yield adds only a small income buffer and a global economic downturn could reduce tech spending, Salesforce’s solid growth potential makes it a strong pick to buy.
Adobe (ADBE)
The last tech stock you should be buying is Adobe (NASDAQ:ADBE), because of its cloud-based software and minimal reliance on tariff-impacted regions. Although tariffs can disrupt global supply chains, Adobe’s multimedia tools like Photoshop and Acrobat, delivered via subscription, face little direct impact. Only 5% of its revenue comes from China and its focus on digital transformation aligns with companies seeking efficiency in a slowing economy.
Adobe enjoyed 15% revenue growth in 2024, driven by Creative Cloud and Document Cloud, which shows its enduring strength. As another tech stock offering a small 0.2% dividend yield for a dash of income stability (tech stocks aren’t typically big dividend stocks) analysts remain optimistic. They have assigned a $571 per share price target (also implying 30% upside potential) while ADBE stock trading at 35 times earnings, but only 19 times estimates.
While Adobe’s valuation seems high and a broader market downturn could hit tech stocks, the cloud-based software stock’s recurring revenue (which hit $2 billion last year) and global diversification make ADBE stock a resilient choice for investors seeking growth with lower trade war risks.
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