Intel (NASDAQ: INTC) recently faced a setback as the U.S. government revoked its license to do business in China. This development caused a significant drop of nearly 3% in the company’s stock price. The tech giant has not disclosed which specific customers will lose access to its high-end processors as not all export licenses were canceled.
In addition to Intel, Qualcomm (NASDAQ: QCOM) also had its licenses revoked, which is believed to be linked to political pressure regarding shipments to Huawei. This move reflects the ongoing tensions between the U.S. and China in the tech industry.
Following the license revocation, Intel has revised its earnings guidance, anticipating that revenue for the quarter will fall below the original range. However, the company remains optimistic about achieving higher full-year revenue compared to 2023.
Despite these challenges, Wall Street analysts have a Hold consensus rating on INTC stock. The current price target of $39.92 per share suggests a potential upside of 33.76% for investors.
Overall, the future of Intel in China remains uncertain as the company navigates through these regulatory obstacles. Investors will be closely monitoring any further developments that could impact the stock’s performance in the coming months.
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