Chip giant Intel (NASDAQ:INTC) had a critical advantage in its sector for quite some time now. While many firms were legally barred from doing business with China, it had the ability to carry on, at least in some senses. However, it lost its license from the U.S. government to do business therein. That, and the accompanying hit to revenue that would come with it, sent Intel down nearly 3% in Wednesday afternoon’s trading.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Not all of Intel’s export licenses were canceled, reports note, but Intel was keeping mum about just who it was that wouldn’t be getting access to high-end Intel processors anymore. And it seems that Intel wasn’t the only one who took a hit from this recent round of revocations; word is that Qualcomm (NASDAQ:QCOM) also got some licenses revoked. With Huawei recently rolling out the MateBook X Pro, its first AI-enabled laptop, just weeks ago, the political pressure to shut down further shipments was likely substantial.
Intel Revises Its Earnings Guidance
In the wake of the latest cancellation, Intel had little choice but to revise its earnings guidance since it lost access to at least one part of its market. The revisions noted that the revenue for this quarter would likely be “below the midpoint of the original range of $12.5 billion to $13.5 billion.” However, it does still look for full-year revenue—and earnings—to come in higher than they were in 2023, which is a good sign in and of itself. Developments like the Gaudi 3 will likely help herein, even if some were disappointed by the initial projections against companies like rival Nvidia (NASDAQ:NVDA).
Is Intel Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on four Buys, 23 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 40% year-to-date decline, the average INTC price target of $39.92 per share implies 33.76% upside potential.
