Intel Corp’s shares are experiencing a downturn on Monday as the market reacts to new trade restrictions announced by the White House, including a significant 25% tariff on goods imported from Japan and South Korea, set to take effect on August 1. This development follows a 90-day negotiation period that failed to yield a resolution and aims to address what the administration describes as “unsustainable trade deficits.”
These tariffs are raising alarms among investors, particularly given the potential implications for multinational companies like Intel that depend on intricate global supply chains. In addition to the tariffs, there are concerns that the administration will impose restrictions on shipments of advanced AI chips to Malaysia and Thailand to prevent technology from reaching China. This dual threat—broad tariffs combined with specific semiconductor controls—poses significant challenges for the U.S. chip manufacturing sector.
Intel, while being viewed as potentially undervalued according to Benzinga’s Edge rankings, is noted for having significant weaknesses in other areas, particularly in momentum and growth. Its current stock price reflects a drop of 2.18% to $22, moving away from its 52-week high of $37.16 and closer to its low of $17.66.
For investors looking to acquire shares of Intel, options include purchasing through a brokerage platform, investing in an ETF that includes Intel, or utilizing a mutual fund in their retirement accounts focused on the Information Technology sector.
The outlook for Intel and the semiconductor industry amidst these trade developments remains cautious, but there is hope that the situation may evolve favorably as negotiations continue and companies adapt to changing trade policies. Investors and consumers alike will be watching closely as these dynamics unfold, with the potential for strategic adjustments to mitigate impacts on the industry.