China-exposed tech companies, such as Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Taiwan Manufacturing Company (NYSE:TSM) and Tesla (NASDAQ:TSLA) and others, will be under the most pressure from U.S. President Donald Trump's reciprocal tariffs announced on Wednesday, according to Wedbush.

By Thursday morning, these stocks were all down between 6% to 7%. 

"If you start with that assumption then the massive sell-off today (and potentially over the coming days) is a major buying opportunity to own the best tech winners on sale for a policy that will be temporary and not permanent," said Wedbush analysts, led by Daniel Ives, in a Thursday note. "Especially China exposed names like Apple, Nvidia, Tesla, TSMC, and a host of other tech and supply chain names will be the most under pressure as worries about this China 34% tariff (could be 54% when adding the baseline) and 32% Taiwan tariff are almost hard to look at."

The "Liberation Day" tariffs are intended to be based on roughly half the amount of the tariffs other countries place on U.S. goods. However, Ives points out that the tariff numbers presented in the White House Rose Garden were inaccurate.

"They are a convoluted set of numbers/calculations that appear to be taking each nation's trade surplus by their total imports with the US," Ives said. "To be clear, these are not the actual tariff rates. If a 9th grader in high school presented this tariff chart to a teacher in a basic economics class the teacher would laugh and say sit down and work on the assignment."

Ives used terms such as "Economic Armageddon" and "Category 5 Hurricane" to describe the tariffs.

"We will see an upcoming earnings season for 1Q in which it would not surprise us if many companies/mgmt teams did not give guidance and would take us back to some of those March/June 2020 Covid days of uncertainty," Ives added. "Investors will start to look at normalized earnings into 2026 assuming this self-inflicted tariff black cloud lifts the next 3-6 months."

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