What’s going on with Intel shares on Wednesday? – Intel (NASDAQ:INTC)

Qualcomm Inc QCOM has postponed its strategic offer for Intel Corp INTC until after the presidential election in November. In addition, the Cybersecurity Association of China (CSAC) decided to investigate Intel’s products sold in China, citing a threat to national security on Wednesday that weighed on the US chipmaker’s stock price.

According to sources cited by Bloomberg, Qualcomm has bought time to improve transparency in its leadership, a key factor in ongoing antitrust regulations and geopolitical dynamics with China.

Also read: Amazon attacks Nvidia stronghold with Databricks deal, cutting AI costs by 40%

Qualcomm agreed to delay its plans until the new US president takes office in January.

The Qualcomm-Intel merger is likely to draw antitrust scrutiny given their impact on the digital environment that supports daily life, including smartphones and electric vehicles. China is an important market for both Qualcomm and Intel.

In September, Qualcomm made a preliminary approach to Intel regarding a possible acquisition.

Benchmark Analyst Cody Acree considered the Qualcomm-Intel deal unlikely, citing significant financial burden and regulatory scrutiny for Qualcomm.

Many such deal attempts, including QualcommNXP Semiconductors NV And Nvidia Corp–Arm Holdings plcsuccumbed to global regulatory resistance.

Meanwhile, CSAC’s audit of Intel could trigger a security review by China’s cyberspace regulator, the Cyberspace Administration of China (CAC), Reuters reports. China’s move represents a retaliation against U.S. sanctions on artificial intelligence, which have limited China’s access to advanced AI chips from companies like Nvidia, citing national security risks.

KeyBanc analyst John Vinh pointed out that Intel has lost market share in the server space Advanced Micro Devices, Inc AMD. He also cited the lack of a cheaper AI CPU for mass-market AI PCs and the rise of Nvidia’s Blackwell as further headwinds for Intel.

Intel shares have plunged over 38% in the last 12 months as the company failed to capitalize on its shift to artificial intelligence.

Conversely, Intel entered into a chip manufacturing deal Amazon Web Services. Intel is also a major contender for the Biden administration’s chip subsidy, making political support for Intel crucial.

Investors can get involved through Intel iShares Core S&P 500 ETF IVV And Vanguard S&P 500 ETF VOO.

Price promotion: INTC shares were down 3.3% at $21.90 at last check on Wednesday.

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