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Construction site, Shanghai, China

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  • China's "stalling" economy is putting some US companies at risk, according to Bank of America.
  • High rates of youth unemployment and recent property defaults have put pressure on the Chinese economy.
  • The bank highlighted the top 10 stocks that have the most revenue exposure to China.

China's economy has been floundering since it reopened from the COVID-19 pandemic, and that represents a big risk for US companies that have a lot of exposure to the region.

Elevated rates of youth unemployment and recent property developer defaults are just a couple reasons why China's economy has been "stalling" in recent months, according to Bank of America.

The bank doesn't think China represents a big risk for the US stock market, given that the S&P 500's direct China revenue exposure is less than 5%. But it did highlight companies that are overly exposed to the region.

"Investors are waiting for a policy response from China," BofA's Savita Subramanian said in a Thursday note. But so far, China's stimulus efforts have had little impact in turning around the economy. 

These are the 10 companies that are most at risk of China's ongoing economic slowdown, according to Bank of America.

10. Applied Materials

FILE PHOTO - Applied Materials’ new corporate signage photo in Santa Clara, California, U.S. is shown in this image released on August 22, 2016. Courtesy Applied Materials/Handout via REUTERS
Applied Materials’ new corporate signage photo in Santa Clara California

Reuters

Ticker: AMAT
Market value: $122.6 billion
Revenue exposure to China: 33%

9. Lam Research

LRCX stock

Markets Insider

Ticker: LRCX
Market value: $89.5 billion
Revenue exposure to China: 35%

8. Broadcom

Broadcom

Reuters

Ticker: AVGO
Market value: $373.8 billion
Revenue exposure to China: 36%

7. NXP Semiconductors

NXP

REUTERS/Steve Marcus

Ticker: NXPI
Market value: $51.5 billion
Revenue exposure to China: 38%

6. IPG Photonics

IPGP stock

Markets Insider

Ticker: IPGP
Market value: $4.9 billion
Revenue exposure to China: 38%

5. Wynn Resorts

FILE PHOTO: An exterior view Wynn hotel-casino in Las Vegas, Nevada, U.S., February 7, 2018. REUTERS/Steve Marcus/File Photo
FILE PHOTO: Wynn Resorts Ltd property in Las Vegas

Reuters

Ticker: WYNN
Market value: $10.7 billion
Revenue exposure to China: 40%

4. Western Digital

Western Digital

360b/Shutterstock

Ticker: WDC
Market value: $13.7 billion
Revenue exposure to China: 47%

3. Monolithic Power Systems

MPWR stock

Markets Insider

Ticker: MPWR
Market value: $24.0 billion
Revenue exposure to China: 58%

2. Qualcomm

Qualcomm
A Qualcomm sign is seen at the second China International Import Expo (CIIE) in Shanghai

Aly Song/Reuters

Ticker: QCOM
Market value: $117.8 billion
Revenue exposure to China: 67%

1. Las Vegas Sands

Macau
he Sands casino and hotel is seen in Macau October 31, 2009. Las Vegas Sands Corp, which is expected to launch a public offering of its Macau operations in November, posted a net loss of $123 million, or 19 cents a share, compared with a year-earlier loss of $32.2 million, or 9 cents a share. Picture taken October 31, 2009.

Reuters

Ticker: LVS
Market value: $38.2 billion
Revenue exposure to China: 67%

Other companies that have considerable revenue exposure to China include: Intel (27%), Tesla (26%), and Nvidia (26%).

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These 10 stocks have the most exposure to China's 'stalling' economy, BofA warns