Summary: Huawei is a leading global technology company and provider of IT products and services, infrastructure, and smart devices. Unfortunately for the investing public, it remains a private company, and it is not possible to buy Huawei stock. However, you can invest in stock alternatives among Huawei competitors and gain access to the consumer electronics market using a reputable brokerage like eToro.
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About Huawei
Founded in 1987 by Ren Zhengfei in Shenzhen, China, Huawei offers integrated digital solutions in IT, telecoms, smart devices, and cloud services. The company maintains a dominant market presence with its smartphones, networking solutions, and 5G technology, especially in China. Furthermore, it has made significant advances in the fields of artificial intelligence and cloud data.
Huawei got involved in several controversies, primarily due to security concerns and allegations of espionage concerning the ongoing US-China trade war. The tension has led to bans in several countries, including the U.S. and the European Union. Despite the obstacles, the company has maintained steady growth and fiscal performance, at least in part due to Chinese government subsidies.
Huawei is a privately held company, and you cannot invest in it directly. Instead, investors could buy Huawei stock alternatives among its competitors.
Huawei stock IPO date
Due to Huawei’s internal structure, it is improbable the company will ever go public. Its founder, Ren Zhengfei, owns approximately 1% of the company shares, while the rest remains with its employees.
Nominally, Huawei is an employee-owned company, but this has been disputed. Voting rights associated with Huawei stock are limited, and share ownership is liquidated when workers leave the company. Furthermore, ownership of the company is restricted to Chinese citizens, and it is widely suspected that the Chinese Communist Party controls the company.
Huawei valuation
Near the end of 2023, Huawei announced it expects to deliver over 700 billion yuan (almost $100 billion) in revenue that year, partly due to its overperformance in the electronics business, which would be a jump of nearly 9% compared to its 2022 records, but still lagging behind the $123 billion the company claimed to earn in 2019.
There is little available and reliable data on Huawei’s fiscal performance and valuation other than its own sources, partially due to the Chinese government’s firm grip on its “national champions” companies.
How to buy Huawei stock: step-by-step
As Huawei remains privately owned and prohibits foreign ownership, you cannot buy its stock. However, you can invest in some of the most successful Huawei competitors. For example:
- Xiaomi (XIACF): Xiaomi is a leading Chinese consumer electronics company and the third-largest manufacturer of smartphones. Dubbed as the Apple of China, the company delivers affordable, high-quality products, such as smart home devices, laptops, and fitness wearables;
- International Business Machines Corporation or IBM (IBM): is an American technology company and a global force regarding digital innovations. The company’s various products and services include computer hardware, software, cloud computing, and artificial intelligence solutions;
- Hewlett-Packard (HPQ): Founded in a garage by Bill Hewlett and Dave Packard in 1939, HP has made a name for itself in the technology sector. It focuses on trademark quality consumer electronics and solutions, such as personal computers, printers, scanners, and software;
- Advanced Micro Devices or AMD (AMD): This U.S. tech company and semiconductor giant specializes primarily in computer microprocessors, motherboard chipsets, embedded processors, graphics processors, and FPGAs catering to servers, workstations, PCs, and embedded system applications. Recently, it acquired substantial shares in the data center, gaming, and high-performance computing markets.
- Intel (INTC): One of the world’s most prominent chipset providers, Intel is renowned for technological breakthroughs and cutting-edge solutions. It has reshaped the digital landscape, driving progress in data computing, cloud, and artificial intelligence.
Step 1: Choose a broker
Before you can buy Huawei stock alternatives, you have to gain access to the stock market. The easiest way to do this is through an online investing platform.
To securely buy Huawei stock alternatives and gain exposure to the consumer electronics market, we recommend you consider eToro:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Charting tools;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 2: Open and fund your account
Once you decide on a brokerage, you have to create and verify your account. The platform will send you the correct instructions via email.
Afterward, you should deposit some funds into your account to prepare to buy Huawei stock alternatives. Typically used funding methods include bank transfers, debit or credit cards, and transaction services like PayPal.
Step 3: Decide how much you want to invest in Huawei alternatives
Limiting your budget protects you from spiraling debt and potential financial disaster. Furthermore, you also need to make sure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers at least three months of daily life expenses.
Step 4: Place your order and buy Huawei competitor stocks
Next, you should place an order and purchase shares in Huawei competitors or rival consumer electronics companies:
- Step 1: Log into your brokerage service account and find the desired stock ticker symbol;
- Step 2: Type in the amount or the number of shares you want to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Pros and cons of investing in Huawei alternatives and other smartphone companies
Pros
- Innovation: Huawei and other consumer electronics giants invest heavily in research and development, causing advances in 5G technology, artificial intelligence, and cloud computing. Breakthroughs in these domains usually deliver competitive advantages;
- Market position: Huawei is a dominant player in the global telecommunications equipment and smartphone markets, especially in China and other emerging markets, offering the potential for significant growth;
- Diversification: Huawei, like other major smartphone companies, has diversified its business beyond these devices into areas like networking equipment, enterprise solutions, and consumer electronics, reducing reliance on any single product line.
Cons
- Security Concerns: Allegations of digital espionage and Huawei’s ties to the Chinese government have raised concerns among international partners and customers, leading to product and service bans in the U.S. and some EU countries;
- Geopolitics: Huawei faces substantial geopolitical risks due to being a Chinese company, leading to regulatory issues in some countries and reducing access to certain commodities, markets, and technologies;
- Legal battles: Huawei has a history of court battles related to accusations of intellectual property theft and accusations of sanctions violations, which could lead to financial penalties, reputational damage, and operational disruptions;
- Volatility: Chinese companies’ stocks tend to experience greater volatility due to geopolitical tensions, regulatory uncertainties, and the influence of Chinese politics on their enterprises.
Common mistakes to avoid when buying Huawei stock alternatives
Make sure to avoid these common investing mistakes when investing in Huawei’s competitors:
- Lack of research: Research the state of the smartphone market and other consumer electronics before investing in these companies;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals;
- Fear of missing out: If the numbers do not add up, do not invest: it is better to miss out than lose money.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Huawei stock
Where is Huawei stock traded?
Huawei is not a publicly traded company, therefore it is not listed on any stock exchange.
Why is Huawei not listed?
Huawei’s ownership is shared among its workforce, with foreigners being banned from owning the company shares, which is the main restriction to Huawei’s IPO.
Can you buy Huawei stock?
Huawei is entirely owned by its employees, and foreigners are banned from holding Huawei shares. Therefore, investors cannot buy its stock.
How much is Huawei worth?
There is little available and reliable data on Huawei’s fiscal performance and valuation other than its own sources. However, Huawei earned almost $100 billion in revenue in 2023.
Who owns Huawei?
Huawei’s founder, Ren Zhengfei, owns about 1% of the company, while the rest is divided among the trade union of its workforce. There is no conclusive or transparent data on Huawei’s ownership structure.
How can I buy Huawei stock?
Unfortunately, you cannot invest in Huawei as it is not publicly traded. However, you can invest in Huawei’s smartphone and consumer electronics competitors using a regulated brokerage like eToro.
Will Huawei go public?
Due to being hailed as the national champion by the Chinese state and having a significant share in the Chinese economy, Huawei is virtually guaranteed never to go public. Instead, the government will continue to align the company’s policy with its national interests.
What are the best Chinese stock alternatives to Huawei?
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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eToro USA is registered with FINRA for securities trading.
