US China trade is back in focus after a proposal to lift tariff-free goods under the bilateral Board of Trade from $30b to $300b, a shift that could reshape cross-border supply chains for years to come. For investors, this screener highlights stocks exposed to this potential easing in non-sensitive goods trade, where lower tariffs might reshape costs, volumes, and profitability. This article walks through 3 stocks from the US China Trade Expansion Opportunity Stocks screener that appear positively exposed to the news, helping you decide whether any of them deserve a closer look in your own research.

Texas Instruments (TXN)

Overview: Texas Instruments is a large US semiconductor company that designs and manufactures analog and embedded chips used to manage power, and to sense and process real world signals in products such as industrial equipment, cars, data centers, personal electronics and communications hardware.

Operations: Texas Instruments generates the bulk of its revenue from Analog products at about US$14.7b, with Embedded Processing contributing roughly US$2.8b and Other lines about US$0.9b. It sells into major markets including the United States and China.

Market Cap: US$278.2b

Texas Instruments stands out in the US China Trade Expansion Opportunity Stocks screener because it already ships a large volume of semiconductors into China. Any easing of tariffs on non sensitive goods could support volumes and pricing in a core market. At the same time, the company is in a long term buildout of 300mm US manufacturing that is aimed at lowering unit costs and improving supply resilience for industrial, automotive and AI driven data center demand. High profitability metrics such as a 28.9% net margin and strong ROE sit alongside risks such as high debt, insider selling and a dividend that is not fully covered by free cash flow. This gives investors plenty to weigh up beyond the headline AI and trade catalysts.

Texas Instruments’ high margins and significant China exposure could be masking a deeper story about cash coverage, leverage, and future capacity. Get the full picture with the 2 key rewards and 3 important warning signs (1 is major!)

Caterpillar (CAT)

Overview: Caterpillar is a global manufacturer of heavy equipment and engines, supplying construction and mining machinery, energy and power systems, and locomotive components, with a large financing arm that helps customers fund this equipment.

Operations: Caterpillar generates most of its US$72.6b in annual sales from Machinery, Power & Energy, led by Power & Energy at about US$33.4b and Construction Industries at roughly US$27.0b, with Resource Industries contributing around US$12.6b and Financial Products about US$4.3b.

Market Cap: US$435.5b

Caterpillar is on many investors’ radar because it sits at the crossroads of global infrastructure demand, AI driven data center power needs, and US China trade. Record backlog around US$63b and strong Power & Energy demand have supported sales and cash generation, while tariff relief and the prospect of much higher tariff free trade with China could ease a multibillion dollar cost headwind highlighted on recent earnings calls. At the same time, a very high P/E ratio, heavy reliance on debt funded liabilities, management turnover and past tariff related margin pressure mean the stock is not risk free. Understanding how these trade, balance sheet and earnings quality threads tie together is critical before deciding whether Caterpillar belongs in your portfolio.

Caterpillar’s record backlog and tariff relief angle suggest a story that might be bigger than its headline P/E. Get the context on cash generation, debt and margin pressure in the analysis report for Caterpillar

QUALCOMM (QCOM)

Overview: QUALCOMM is a US semiconductor and wireless technology company that designs chips and software for smartphones, cars, connected devices and data centers, while also licensing a large portfolio of 3G, 4G and 5G patents to other manufacturers worldwide.

Operations: QUALCOMM generates most of its revenue from Qualcomm CDMA Technologies at about US$38.5b, with Qualcomm Technology Licensing contributing around US$5.7b and nonreportable segments about US$0.3b.

Market Cap: US$225.6b

QUALCOMM sits at the intersection of US China trade and AI, supplying key wireless and processor chips to Chinese smartphone makers while using its handset cash flows to fund growth in automotive, IoT and AI data center silicon. A large expansion in tariff free trade on non sensitive goods could support volumes into China just as the company focuses on edge and data center AI, in addition to a current ROE of about 36% and a dividend around 1.73%. On the other hand, there are factors such as forecast earnings decline, margin pressure, insider selling and an all external funding base, which could matter if sentiment turns. The question for investors is whether QUALCOMM’s role as AI “connective tissue” outweighs these risks at today’s valuation.

QUALCOMM’s AI and China ties could be masking the real story, where handset cash flows, licensing income and new silicon bets pull in different directions. See how the analyst forecasts for QUALCOMM frame that tension before the next twist appears

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.