On Wednesday, Intel Corporation (NASDAQ: INTC) saw a modest uptick in its stock price amidst a volatile day of trading in the semiconductor sector.
Semiconductor stocks faced a tumultuous day on Wednesday as reports of potential export restrictions and mixed earnings from ASML Holding (NASDAQ: ASML) swayed the market sentiment.
ASML shares plummeted over 12% following its second-quarter earnings release, which showed a decline in numbers compared to the previous year. The company also provided forward guidance with a quarterly gross margin expectation of 50% to 51%, slightly below market expectations of 51.1%.
Investor concerns deepened further with a Bloomberg report suggesting that the Biden administration is contemplating stringent trade restrictions on China, particularly targeting access to advanced semiconductor technology.
Former President Donald Trump’s comments regarding Taiwan further contributed to market volatility. In an interview with Bloomberg Businessweek, Trump said,
“I know the people very well and respect them greatly. They did take about 100% of our chip business. I think Taiwan should pay us for defense.”
In response to these developments, investors have shown a preference for perceived safer bets such as Intel (NASDAQ: INTC) over competitors like Taiwan Semiconductor Manufacturing Company (NYSE: TSM) and NVIDIA Corporation (NASDAQ: NVDA) both heavily reliant on Taiwan for manufacturing. Intel recently announced plans to invest over $100 billion in the U.S. to expand its manufacturing capacity and capabilities across several states, supported by the CHIPS Act.
Intel will report its second-quarter results on August 1 after market close. Analysts, as per estimates from Benzinga Pro, anticipate earnings of 10 cents per share and quarterly revenue of $12.948 billion.
Intel (NASDAQ: INTC) Stock Movement
INTC stock gained 0.35% on Wednesday, closing at $34.46, marking a 1.18% decrease for the week. The trading volume was 112,304,216 shares, significantly higher than the average daily volume of 48.47 million.
