Intel Eyes Q2 Revenue Below Guidance Midpoint, Hit By US Ban On Huawei: Details
Portfolio Pulse from Shivani Kumaresan
Intel Corp (NASDAQ:INTC) anticipates Q2 2024 revenue to be below the midpoint of its $12.5 billion to $13.5 billion guidance, affected by the U.S. ban on exports to Huawei. This follows the U.S. Department of Commerce revoking licenses for consumer-related exports to China, impacting both Intel and Qualcomm Inc (NASDAQ:QCOM). Despite this, Intel expects year-over-year growth in 2024 revenue and EPS. The ban, part of broader U.S. efforts to limit China's access to semiconductor technology, also affects other chipmakers like AMD (NASDAQ:AMD) and Nvidia Corp (NASDAQ:NVDA). Intel's stock, along with others, has declined, with INTC down over 3% in the last 12 months. Investors can access Intel stock through ETFs like First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL) and Strive U.S. Semiconductor ETF (NYSE:SHOC).
May 08, 2024 | 4:01 pm
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NEGATIVE IMPACT
AMD's stock decline mirrors Intel's, influenced by the US regulatory actions against Huawei.
AMD's stock decline, in line with Intel's, indicates a negative short-term impact due to broader US-China tech tensions.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
FTXL, holding Intel stock, may see its value influenced by Intel's anticipated revenue dip and broader US-China semiconductor tensions.
As an ETF holding Intel stock, FTXL's value is indirectly impacted by Intel's performance and the geopolitical landscape affecting the semiconductor industry.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
NEGATIVE IMPACT
Intel expects Q2 2024 revenue below guidance midpoint due to US ban on Huawei, impacting exports. Year-over-year growth in revenue and EPS for 2024 is still anticipated.
Intel's direct mention of expected revenue impact due to the US ban on Huawei indicates a negative short-term outlook for its stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Nvidia's stock performance affected by the US's stringent export restrictions to Huawei.
Nvidia, similar to AMD and Intel, is likely to experience a negative short-term stock price impact due to the US's export restrictions.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
NEGATIVE IMPACT
Qualcomm's license to export to Huawei revoked by the US, potentially affecting its semiconductor sales.
The revocation of Qualcomm's export license to Huawei suggests a negative impact on its short-term sales and stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
SHOC ETF, with exposure to Intel, may be affected by Intel's revenue expectations and the US's actions against Huawei.
Given SHOC's exposure to Intel, the ETF is likely to be impacted by Intel's forecasted revenue dip and the broader US-China tech conflict.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60