6 Tech Stocks With Major Exposure to Asia

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

The world economy is on two different tracks.

On one track, the developed world is experiencing economic contraction and stagnant growth. Countries throughout Europe have stumbled into recession due to austerity measures. Japan persists on its decade-long path of lackluster growth. And the U.S. economy, while rebounding, continues to underperform its potential, recording growth of only 2.2% in the first quarter of 2012.

On the other track, the developing world is recording robust economic growth. Spurred by the twin tailwinds of easy external financing and a dramatic uptick in commodity prices, output from Latin America grew by 6.5% in 2010 and 4.5% last year. And the emerging markets in Asia continue their dramatic upward ascent, led by China and India, which are expected to record growth rates this year of 8.2% and 6.9%, respectively.

The corporate poster child of this two-track system is Yum! Brands, the U.S.-based owner of Pizza Hut, Taco Bell, and KFC. In 2011, the company's same-store sales declined by 1% in the United States but grew by 19% in China. Over 70% of its operating profit is now generated abroad. And its shares have outperformed those of its principal competitor, McDonald's, which derives a full 40% of its revenues from Europe, by a staggering 28 percentage points over the last five years.

With this in mind, it should be no surprise that the world's smartest investors are choosing companies with less exposure to the developed world and more to emerging markets. Last week, I disclosed the proportion of revenue that five leading technology companies get from Europe. Now, in the table below, I disclose the proportion of revenue that these same companies, with one addition, get from Asia.


Asia-Pacific Exposure 
(% of Net Sales)

Market Cap 

Add to My Watchlist

Qualcomm (Nasdaq: QCOM  ) 76% $100 Add
Intel (Nasdaq: INTC  ) 66% $132 Add
Apple (Nasdaq: AAPL  ) 26% $499 Add
IBM (NYSE: IBM  ) 25% $230 Add
Oracle (Nasdaq: ORCL  ) 17% $131 Add
Cisco Systems 15% $90 Add

Source: All geographic sales data other than Qualcomm's and Apple's are from the respective companies' most recently filed quarterly reports. Qualcomm's and Apple's, the latter of which excludes sales from its retail division, are from the companies' most recently filed annual reports.

Foolish bottom line
While diversification is no cure-all, thanks in part to places like Europe, it is one component of successful modern investing. For a handful of stock ideas to get you started down this path, in turn, check out our free report about three American companies set to dominate the globe. To get your free copy while it's still available, click here now.

Fool contributor John Maxfield does not have a financial position in any of the companies mentioned above. The Motley Fool owns shares of International Business Machines, Qualcomm, Oracle, Cisco Systems, Intel, and Apple. Motley Fool newsletter services have recommended buying shares of McDonald's, Intel, Yum! Brands, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1895691, ~/Articles/ArticleHandler.aspx, 10/21/2016 10:30:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AAPL $116.60 Down -0.46 -0.39%
Apple CAPS Rating: ****
IBM $149.63 Down -1.89 -1.25%
IBM CAPS Rating: ****
INTC $35.15 Down -0.28 -0.79%
Intel CAPS Rating: ****
ORCL $37.93 Down -0.16 -0.42%
Oracle CAPS Rating: ****
QCOM $67.93 Up +0.59 +0.88%
Qualcomm CAPS Rating: ****