The U.S.-China trade war has been a headwind for tech stocks in recent months. In particular, the addition of Huawei to the Commerce Department's Entity List -- which heavily restricted U.S. companies from doing business with the Chinese tech giant -- has crippled a line of revenue that the likes of Skyworks Solutions (NASDAQ: SWKS) and Xilinx (NASDAQ: XLNX) were enjoying earlier.
Both chipmakers' latest quarterly reports revealed that they've taken a hit. However, speaking at a Council on Foreign Relations event last week, White House Economic Advisor Larry Kudlow asserted that Beijing and Washington were close to hammering out a limited, phase-one trade deal.
As such, there's a good chance that Skyworks and Xilinx might witness a turnaround in their fortunes next year. If that indeed happens, now would be a great time to load up on these two tech stocks, given their growth potential.