What's Going On With Intel Stock?

Intel Corporation INTC shares are trading lower by 1.1% to $35.68 Wednesday morning. Semiconductor stocks have experienced heightened volatility this week following the announcement by the Biden administration that it intends to cease shipments of advanced AI chips to China.

What Happened?

The U.S. government has imposed new rules aimed at preventing China from utilizing American AI technology for military objectives, per a report by Reuters. These rules involve limitations on chip exports to China, Iran and Russia, and the blacklisting of two Chinese chip manufacturers.

The objective is to curtail China's access to chips that could bolster its military capabilities while minimizing harm to its economy, as explained by Commerce Department Secretary Gina Raimondo.

See Also: U.S. Fires Another Shot At China's AI Aspirations

What Else?

Intel and semiconductor companies at large rely heavily on international markets, particularly China, which is a major consumer of semiconductor products. Disruptions or restrictions in the Chinese market can directly impact Intel's financial performance. Investors consider the long-term implications of government policies, and if the halt in chip shipments signals a broader shift in U.S.-China trade relations, it may raise concerns about Intel's business prospects.

This uncertainty can result in stock price volatility for the company in the near term.

According to data from Benzinga Pro, INTC has a 52-week high of $40.07 and a 52-week low of $24.73.