Intel Corporation’s stock plunged more than 5% following reports that the Trump administration plans to tighten semiconductor export controls to China.
On Tuesday, Intel shares fell 5.27% to $22.99 on the New York Stock Exchange.
The company had recently experienced a stock rally, driven by speculation that Broadcom and Taiwan’s TSMC might pursue a split acquisition of Intel.
However, the stock took a significant downturn after Bloomberg reported that the Trump administration plans to impose further restrictions on semiconductor exports.
China is a critical market for Intel, with sales reaching $15 billion last year.
If the Trump administration tightens semiconductor export controls to China, it will significantly damage Intel’s revenue. A sharp decline in sales from China, in particular, could inflict even greater damage on Intel, which is already struggling with management challenges.
These concerns likely triggered the sharp drop in Intel’s stock price. Despite this setback, Intel’s shares have risen 10.37% over the past month.