Here are 7 tech stocks that will benefit if Trump cuts tax on overseas profits, Goldman says

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Goldman Sachs' technology research team shared a list of companies that will prosper from President Donald Trump's repatriation tax cut plan for international earnings.

"The Trump administration has signaled a set of wide-ranging changes across taxes, trade and regulations. ... Relative to other sectors, TMT [technology, media and telecom] would benefit disproportionately from both potential repatriation ... and tax policies that encourage infrastructure investment," analyst Heather Bellini wrote in a Monday note to clients entitled "Transition to Trump: Implications for TMT."

Bellini cited how the Republican-led House plan lowers the repatriation tax rate on overseas cash earnings to 8.75 percent from 35 percent, while Trump proposes a reduction to 10 percent. Goldman economists project a repatriation tax of 8 to 10 percent. The firm sees the tax reform passing this year due to bipartisan support for the issue.

The analyst estimates there is about $700 billion in cash held overseas by technology companies, which may be brought back to the U.S.

"Although it remains unclear what the companies would do with the repatriated cash, we believe … repatriated funds could provide companies with firepower for accelerated buybacks, dividend raises, organic investment and potential M&A," she wrote.

To find the best technology stocks under a lower repatriation tax rate environment, Goldman searched for companies with the largest amount of cash held overseas and highest level of overseas cash as a percentage of market cap.

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