When it rains, it pours. And for chip stock Intel (INTC), it is pouring indeed. As rough as everything has been for it lately, things just got worse, as reports note that Intel may be under regulatory fire in China, and investigation into antitrust violations may be on tap. That was hardly welcome for investors, who sent shares down fractionally in Tuesday afternoon’s trading.
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The new reports suggest that China is considering an “antitrust probe” into Intel. As to why, however, no one seems quite sure. Most reports suggest that the probe is a “retaliatory” measure being taken in response to the Trump tariffs. These are currently in effect, as China—unlike Mexico and Canada—refused to make any concessions that might have taken the tariffs off the table.
The Intel probe is just the latest such measure, reports note, as both Nvidia (NVDA) and Google (GOOGL) are both up for probing. Google’s was announced earlier today, and Nvidia’s has been in play since December 2024. Oddly, the Intel probe seems the weakest of the three right now, as some officials noted that the Intel probe may never come to be. It is at least partially dependent on “…the state of US-China relations,” the report noted.
Bill Gates Isn’t Encouraged
And then came what may have been Intel’s death blow. A report from no less than Microsoft (MSFT) founder Bill Gates himself says that Intel, right now, is not looking good. In fact, Gates noted: “I am stunned that Intel basically lost its way.” Further, Gates noted, “I hope Intel recovers, but it looks pretty tough for them at this stage.”
Gates offered up these remarks in connection with the release of his new memoir Source Code: My Beginnings. In that book, Gates notes that Intel’s move to create the microprocessor in the first place basically made Microsoft necessary. But now, Intel is falling apart under growing competition and concerns for its future are largely valid.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 25 Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 54.21% loss in its share price over the past year, the average INTC price target of $22.02 per share implies 13.77% upside potential.
