Intel Corporation Shares Are Down Today: What's Going On?

Zinger Key Points

Intel drops as Trump administration moves to tighten chip restrictions on China, weighing on the broader semiconductor sector.
Taiwan’s economy ministry denies knowledge of any TSMC investment in Intel amid market speculation.
Get two weeks of free access to pro-level trading tools, including news alerts, scanners, and real-time market insights.

Intel Corporation inc.‘s INTC stock was down Tuesday amid broader weakness in semiconductor stocks as the Trump administration moves to tighten chip export restrictions to China.

What To Know: According to Reuters, reports indicate these restrictions could expand beyond Biden-era policies, impacting key players like Nvidia and SMIC. At the same time, uncertainty surrounding the CHIPS Act has added pressure, with reports suggesting that firings at NIST could disrupt U.S. semiconductor funding.

The market selloff extended across the tech sector, with ETFs like SOXX, SMH and QQQ showing declines. Microsoft’s canceled data center leases and weak consumer data contributed to negative sentiment. Investors are also awaiting Nvidia's earnings, which could provide further direction for the sector according to Bloomberg.

Meanwhile, Taiwan's economy ministry stated it has not received any information regarding a potential investment by TSMC in Intel or the U.S. While media reports suggest TSMC has been in discussions about taking a stake in Intel, neither company has confirmed these reports, according to Reuters. Any major foreign investment by TSMC would require approval from Taiwan's government, but officials say no formal application has been submitted.

In Washington, Trump's team is holding discussions with Japan and the Netherlands on restricting maintenance of chip-making equipment in China. These measures aim to prevent China from advancing its semiconductor industry, a continuation of policies started under Biden. There is also talk of tighter restrictions on Nvidia's AI chip exports and potential sanctions on specific Chinese tech firms.

The broader concern remains the impact of escalating U.S.-China trade tensions on the semiconductor supply chain, with investors closely watching regulatory moves and upcoming earnings reports for further market direction.

INTC Price Action: Intel Corporation shares were down 5.27% at $22.99 on Tuesday, according to Benzinga Pro.