Investing in a struggling business like Intel is not recommended, as loyal shareholders have experienced disappointment this year. Despite the low share price, Intel’s financial position is weakening, and the company is facing profitability challenges. The ongoing tensions between the US and China are expected to impact Intel, as the Biden administration plans to increase tariffs on Chinese-made chips. This trade and technology war is likely to continue, regardless of the outcome of the 2024 US presidential election.
Additionally, Intel’s plans for chip production in China may be hindered by restrictions on a cutting-edge chip architecture. The company has also faced setbacks in its chip factories in Ireland and Israel. Intel’s stock is currently rated a “D” due to its various issues and the uncertain geopolitical environment. Investors are advised to approach Intel with caution and consider the risks associated with the company amidst the ongoing trade war.
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