To The Moon

$Intel(INTC)$ Quite certain you should have come across the bad news (by now) looming over Intel and $AMD(AMD)$ . In the latest tit-for-tat between the two super powers, China is reacting to further sanctions by the Biden government over chips exports and blacklisting of more Chinese companies at the trade front. (see below) According to S&P Global Market Intelligence’s data, when the news broke on Mon, 25 Mar 2024 Intel immediately fell by -2% as of 11 a.m. ET. It had even at one point in time, fell by as much as -4.7% earlier in the day's trading. “Luckily” by the time trading ended, it fell by -1.74% only. (see below) The loss is in reaction to news that China is making moves to ban the use of its central processing units (CPUs) and other chips in government computers. On Sun, 24 Mar 2024 - The Financial Times, reported that the Chinese government agencies ranking above the township level will be barred from using the company's processors in their systems. This follows a similar restriction enacted back in September 2023 where forbidden use iPhone by government employees expanded to various state-backed firms. At the heart of the issue (ban) is the importance of the Chinese market to Intel. In the last 12 months, Intel generated around 27% of its revenue from mainland China. According to FactSet, this is more than any other single market. Revenue numbers represent shipments into China: - For sales to customers in the country. - For assembly into computers sold elsewhere, meaning it may not translate into Chinese consumption. The fatal-blow question remains how far restrictions initially placed on Chinese government devices could spread through the country’s huge state-owned and state-backed corporate sector as well as the wider market ? Judging by US market renewed optimism, the real impact seems to have been disregarded for now. Intel price have managed to stage a recovery after the news broke out, clearly showing the power of the market forces. - Do you think Intel fall when Q1 2024 earnings is out? - Do you think this is the beginning of Intel’s demise; given that when its under-construction foundaries are ready in 2 to 3 years’ time, there is little to no demand for its chips? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents