Intel Stock Is Falling Victim to the Trade War. How Should You Play INTC Here?
Beijing's retaliation is significant for INTC as it currently has meaningful revenue exposure to the largest Asian economy. Investors are concerned because China's new tariffs add to an already long list of challenges facing Intel.
Intel stock is now down more than 20% versus its year-to-date high in mid-February.
Why Is Intel Stock Down on Friday?
China brought in about $15.5 billion in revenue to Intel last year, which translated to nearly 30% of the company's overall revenue in 2024.
But the country's new tariffs on U.S. products will now make Intel chips more expensive for its local businesses, potentially driving them to rivals, including Samsung, Huawei, and Taiwan Semi (TSM).
This could lead to significant pressure on Intel's top line moving forward, which may prove dire, given the chipmaker is already grappling with maintaining its market share against the likes of Nvidia (NVDA) and Advanced Micro Devices (AMD).
Versus their 52-week high, INTC shares are down nearly 50% at the time of writing.
Should You Buy the Dip in INTC Shares?
While China's new tariffs are broadly negative for the chipmaker, Timothy Arcuri, a UBS analyst, remains somewhat bullish on Intel stock for 2025.
Arcuri is constructive primarily because TSMC has reportedly agreed to a joint venture with Intel that would see it take a 20% stake in INTC's foundry business.
'This would infuse capital and operational know-how into Intel's foundry business,' he told clients in a research note on Friday.
Additionally, the analyst has confidence in the leadership of Lip-Bu Tan, an industry veteran who joined INTC as its chief executive last month. Arcuri's $23 price target on Intel shares indicates potential upside of nearly 14% from here.
Street Is Bullish on Intel's New CEO
Wall Street seems convinced that Lip-Bu Tan can engineer a much-anticipated turnaround at Intel.
While the consensus rating on INTC stock currently sits at 'Hold,' the mean target of $24.43 still suggests potential upside of about 20% from here.
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Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Under several trade agreements — chief among them, the Canada-United States-Mexico Agreement (CUSMA) negotiated with the first Trump administration — a large quantity of dairy products enter Canada tariff-free until they reach the tariff rate quota. Under CUSMA, the U.S. can send 49 million litres of milk to Canada every year, before a single drop would have a tariff imposed. And that tariff-free amount is set to continue to grow gradually over the next 13 years. Canada presently has a $520-million dairy trade deficit with the U.S. and American dairy exports to Canada have increased by 67% since 2021, to $877 million in 2024. 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Balsam Brands' Harman said he's had to resign himself to not having as robust a selection of ornaments and frosted trees to sell as in years' past. Soon, it will be too late to import meaningful additions to his range of products. 'Our purpose as a company is to create joy together, and we're going to do our very best to do that this year,' Harman said. 'We're just not going to have a bunch of the items that consumers want this year, and that's not a position we want to be in.' Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
