What's Going On With Intel Stock?

Intel Corp INTC shares are trading flat Friday and lower by some 6.6% to $31.10 for the week. This decline comes amid sector-wide pressure from recent earnings reports and looming concerns over potential new restrictions on China.

What’s Happening?

The semiconductor sector has experienced heightened volatility recently. President Biden is contemplating additional measures against China, which is causing uncertainty in the market. Furthermore, former President Donald Trump’s remarks during a recent Bloomberg interview regarding the China-Taiwan conflict have stoked fears of political and economic instability. Trump’s suggestion of a possible shift in U.S. policy toward Taiwan could threaten Intel’s supply chain.

Geopolitical tensions are exacerbating investor concerns about supply chain disruptions, potential tariffs and sanctions. As a leading company in the semiconductor industry, Intel is particularly vulnerable to these risks.

Read Also: Why Taiwan Semiconductor Manufacturing Company Shares Are Volatile This Week

What Else?

As the U.S. government considers additional restrictions on China, there may be increased investment in domestic semiconductor manufacturing. Intel, being a leading U.S.-based semiconductor company, could benefit from government incentives and subsidies aimed at boosting domestic production.

Additionally, geopolitical tensions might accelerate technological innovation within the U.S. semiconductor industry. Intel, with its strong research and development capabilities, could lead in developing new technologies, giving it a competitive edge.

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Is INTC A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Intel‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Intel does pay a dividend, which yields 1.36% per year as of the closing price on Jul. 26, 2024. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 19.89%, you'll need to buy a share of Oxford Lane Capital by the Dec. 17, 2024. Once done, you can expect to receive a nominal payout of $0.09 on Dec. 31, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Intel will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, INTC has a 52-week high of $51.28 and a 52-week low of $29.73.