03:08 PM EDT, 05/08/2024 (MT Newswires) -- Intel ( INTC ) and Qualcomm ( QCOM ) are expected to see a "modest" impact from the US government's decision to revoke their licenses to sell chips for use in Huawei Technologies' phones and laptops, Wedbush Securities said Wednesday.

The US Department of Commerce informed Intel ( INTC ) Tuesday that it was revoking certain licenses for exports of consumer-related items to "a customer in China," the company said in a Wednesday filing with the Securities and Exchange Commission.

Intel ( INTC ) said it now expects its second-quarter revenue below the midpoint of its projected $12.5 billion to $13.5 billion range. Analysts polled by Capital IQ expect $13.08 billion. The company continues to expect full-year per-share earnings and revenue to increase year over year, according to the filing.

Qualcomm ( QCOM ) told MT Newswires in an e-mailed statement that the Commerce Department revoked certain export licenses of the company for Huawei. "We will continue to comply with all applicable export control regulations," the company said.

Intel ( INTC ) shares were down 2.7% in Wednesday late-afternoon trade, while Qualcomm ( QCOM ) fell 0.2%.

"The impact on (Qualcomm ( QCOM )) and (Intel ( INTC )) should be modest given the relatively small volume of business they conduct with Huawei, particularly with other notebook vendors likely to pick up share if Huawei can't ship product due to the new restrictions," Wedbush analyst Matt Bryson said in a note.

The Commerce Department is also contemplating sanctions against other Chinese firms potentially supplying Huawei, according to the note. "We see direct implications from this news as less significant than the continuation of US-China tensions and the potential that the next action by either government has more meaningful implications for companies we cover," Bryson said.

Huawei and the Commerce Department didn't respond to MT Newswires' requests for comment.

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