Intel dives on China risk, downbeat analyst view on TSMC deal
So much for one of the few bright spots in Thursday’s market collapse.
Shares of struggling US semiconductor icon Intel tumbled sharply on Friday, a day after a headline-driven surge made it one of the only bright spots in the tariff-battered US markets.
On Friday, Intel succumbed to the strength of the tariff shock, perhaps due to China’s retaliatory 34% tariff on all US goods announced today. Last year, China accounted for the largest share, 27%, of Intel’s net revenues.
Probably slightly less impactful was a brief note published by analysts covering Intel shares for Citi. Titled “Intel Stock up 7% on TSMC JV Report. The Wrong Move in our Opinion. Continue to Believe Intel Should Exit Foundry,” the note seemed to pour cold water on the business prospects for the joint venture between TSMC and Intel that investors have been fixating on. They wrote:
“We do not believe TSMC operating/forming a JV with Intel would work given differences in manufacturing and operations and continue to believe Intel should exit the merchant foundry business and stick with manufacturing its own chips.”
