Intel (INTC) expects its second-quarter revenue to fall below market median forecasts, primarily due to the impact of the new US ban on Huawei on its business.

Affected by the latest US export ban on Huawei Technologies Co., Ltd., Intel expects its revenue for the second quarter of 2023 to be lower than the midpoint of the previously provided range of $1.25 billion to $1.35 billion. Despite the company's expectations of revenue and earnings per share growth for 2024 compared to the previous year, the ban has caused its stock price to fall by 2.5% in pre-market trading to $29.91.

Industry reactions and assessments suggest that this decision may not directly affect the sales of a large number of chips but underscores the US government's determination to restrict China's access to semiconductor technology. Market analysts point out that this not only affects Intel but also impacts other chip manufacturers such as Qualcomm, AMD, and NVIDIA, whose pre-market stock prices also experienced declines. Qualcomm stated that its business with Huawei has significantly shrunk and will be gradually terminated.

Since 2019, Huawei has been affected by US trade restrictions, with the US government concerned that its technology could be used as a tool for espionage. Currently, in addition to revoked chip sales licenses, US officials are considering imposing sanctions on six Chinese companies suspected of supplying chips to Huawei.