The strong U.S. dollar has wreaked havoc on commodities like gold and oil. Now, it could have a new victim: tech, says one top investor.
"It should be a big concern for everybody," Alpha One Capital Partners' Dan Niles warned on CNBC's "Options Action" on Friday.
For many of the largest tech companies in the U.S., international sales represent the bulk of revenues. For example, more than 82 percent of Intel's sales come from outside the United States, according to data compiled by FactSet. Both IBM and Hewlett-Packard get two-thirds of their revenues from overseas.
So far, tech investors have ignored the dollar's potential negative impact. Over the past 52 weeks, the Nasdaq has rallied almost 20 percent while the broader S&P 500 has logged a 12 percent return. However, since the start of the year, the U.S. dollar index, which measures the strength of the buck against a basket of other major currencies, has gone parabolic, rising over 10 percent. And that move has already hit the bottom line of some large-cap companies.
"Hewlett-Packard brought up on their call how they had their Japanese competitors now able to take advantage of pricing," said Niles. "Intel, in their press release, even mentioned currency."