Intel Shares Have Dropped 47% In The Past Year, Now Chipmaker Faces China AI Chip Curbs Just Like Nvidia Amid Trade Tensions

Intel Corporation INTC has reportedly informed its Chinese clients last week that it will now require a license to export certain advanced artificial intelligence processors.

What Happened: The new restriction applies to chips with a total DRAM bandwidth of 1,400 gigabytes per second or more, or an I/O bandwidth of 1,100 GB per second, reported Financial Times.

The Gaudi series from Intel, similar to Nvidia Corporation’s NVDA H20 processor, exceeds these thresholds and will be affected by the new rules.

The move comes a day after Nvidia warned it could face a $5.5 billion hit from similar export restrictions imposed by the U.S. government.

Why It’s Important: The latest chip licensing rule marks a new escalation in the ongoing U.S.-China trade tensions. While the Donald Trump administration has paused reciprocal tariffs for several nations, it has simultaneously imposed higher duties on Chinese imports.

In response, China hit back over the weekend with retaliatory tariffs of up to 125% on U.S. goods.

Advanced Micro Devices, Inc. AMD disclosed in a Wednesday morning filing that new export restrictions on chips could lead to charges of up to $800 million tied to inventory and purchase commitments.

Meanwhile, ASML Holdings ASML released its first-quarter earnings on Wednesday, cautioning that rising tariffs have added uncertainty to its outlook, potentially contributing to broader market weakness.

Price Action: Intel's shares fell by 3.12% on Wednesday, continuing a downward trend that has seen its stock drop nearly 47% in the past year. Year-to-date, Intel is down by 4.9%, according to data from Benzinga Pro.

AMD shares dropped 7.35% on Wednesday, while ASML and Nvidia fell 7.06% and 6.87%, respectively, reflecting broader pressure on the semiconductor sector.

Intel currently holds a growth score of 3.51%, according to Benzinga Edge Stock Rankings. Click here to see how it compares with Nvidia, ASML, AMD, and other major players in the chip industry.