Intel Corporation (NASDAQ: INTC) stock fell over 2% in intraday trading Wednesday as the chipmaker revised its revenue forecasts for the current quarter. The move comes after U.S. regulators revoked its license to sell to Chinese telecom Huawei.
The U.S. Department of Commerce has dealt a significant blow to Intel Corporation (INTC) by revoking its license to export products to Huawei, a prominent Chinese technology company. This move intensifies the ongoing trade battle between the United States and China, which has seen multiple restrictions imposed on exporting certain chips to Chinese firms. Now, the ban extends to include communication giant Huawei.
In response to this development, Intel has adjusted its revenue guidance for the second quarter of 2024. While the company still expects revenue to fall within the range of $12.5 billion to $13.5 billion, it cautioned that the actual revenue for the quarter is likely to be below the midpoint of this range. The decision reflects the anticipated impact of the license revocation on Intel’s sales to Huawei and its overall revenue stream.
Intel’s outlook for the full year of 2024 remains vague, with the company stating that it expects revenue and earnings per share (EPS) to increase compared to 2023. Analysts, however, anticipate revenue to reach $55.83 billion with an EPS of $1.10 for the year.
Intel (NASDAQ: INTC) Stock Price Action
INTC stock dropped 2.22% to close at $30 on Wednesday. Its value decreased by 1.22% this week. Trading activity has witnessed 63,734,596 (63.73 million) shares changing hands, well above the average daily volume of 49.97 million.
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