Investors cheer partial recovery of Intel Corporation (NASDAQ: INTC) stock after Friday’s turbulence.
Intel (INTC) stock saw a 0.95% rise in pre-market trading on Monday, marking a partial recovery from the significant decline observed during intraday trading on Friday. The drop in Intel’s stock on Friday was precipitated by reports suggesting that China has directed its telecom firms to phase out the use of chips manufactured outside the nation, including those from American companies.
According to The Wall Street Journal, the Ministry of Industry and Information Technology issued an order earlier this year instructing China’s major telecom companies to transition away from foreign processors, which are integral to their networks, by 2027. The directive aims to accelerate China’s efforts to reduce reliance on foreign chips, prompting state-owned mobile operators to inspect their networks for non-Chinese semiconductors and establish timelines for their replacement.
Sources close to the situation informed the Journal that the decision would hit Intel and AMD the hardest. In recent years, two U.S. companies have been the primary suppliers of core processors in China and worldwide.
In related news, BofA Securities adjusted its price target for Intel (INTC) shares, reducing it from $50 to $44. The firm maintained a Neutral rating on the stock.
Intel (NASDAQ: INTC) Stock Price Action
INTC stock plunged 5.16% to close at $35.69 on Friday. The traders had exchanged hands with 79,991,974 (79.99 million) shares compared to the average daily trading volume of 47.91 million. INTC has a market capitalization of $150.90 billion.
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