Intel, Qualcomm Export Licenses Revoked By US, Tech Giants Won't Be Able To Sell Chips To Huawei: Report (UPDATED)
Portfolio Pulse from Benzinga Neuro
The U.S. Commerce Department has revoked the export licenses of Intel Corp (NASDAQ:INTC) and Qualcomm Inc. (NASDAQ:QCOM), preventing them from selling chips to Huawei Technologies. This decision, influenced by concerns over national security and technological advancements in China, follows the launch of Huawei's AI-enabled MateBook X Pro laptop, powered by Intel. The move is part of broader U.S. efforts to restrict China's access to advanced technology, impacting companies like Intel, Qualcomm, and indirectly mentioned NVIDIA Corp (NASDAQ:NVDA) and Broadcom Inc (NASDAQ:AVGO), which have significant revenue dependencies on the Chinese market.
May 08, 2024 | 7:08 am
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Broadcom, while not directly mentioned in the context of the revocation, may experience indirect impacts due to its significant business dealings in China.
Broadcom's inclusion in the discussion of U.S. semiconductor firms with substantial revenues from China implies potential indirect impacts from the broader U.S.-China technological and regulatory tensions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Intel's export license revocation to Huawei may negatively impact its sales and revenue, particularly in the laptop segment.
Intel's direct involvement in supplying chips to Huawei and the revocation's immediate effect suggest a significant short-term sales and revenue impact, especially given the recent launch of a Huawei laptop powered by Intel.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Indirectly mentioned, NVIDIA may face challenges due to broader U.S. restrictions on chip technology exports to China, despite not being directly impacted by the license revocation.
Although not directly impacted by the license revocation, NVIDIA's mention in the context of Chinese entities acquiring chips through third parties suggests potential indirect challenges due to U.S. restrictions.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Qualcomm faces a similar impact as Intel, with potential revenue losses from the inability to sell chips to Huawei.
Given Qualcomm's role in the handset market and its previous ability to sell to Huawei, the revocation could lead to significant short-term revenue losses.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90