On Wednesday, Intel (INTC.O) announced that its revenue would suffer following the U.S.’s revocation of some export licenses for a Chinese client, a move criticized by Beijing as an overreach in the name of national security. Although Intel did not disclose the identity of the affected Chinese customer in its Securities and Exchange Commission filing, Reuters had previously reported that licenses permitting companies like Intel and Qualcomm (QCOM.O) to supply chips for laptops and smartphones to sanctioned Chinese telecoms giant Huawei Technologies had been rescinded.
The recent release of Huawei’s inaugural AI-powered laptop, the MateBook X Pro featuring Intel’s latest Core Ultra 9 processor, faced backlash from Republican lawmakers who alleged that it implied the Commerce Department had approved Intel’s chip sales to Huawei.
Intel’s stock dropped 2.9% to $29.80 on Wednesday afternoon following the announcement, as the company projected second-quarter revenue to remain within the $12.5 billion to $13.5 billion range but below the midpoint. Year-to-date, Intel shares have plummeted nearly 38%.
