Intel Corporation ( INTC ) shares are trading lower on Tuesday alongside other semiconductor stocks as escalating U.S.-China trade tensions create macro uncertainty and weigh on the broader market.

What Happened: U.S. stocks fell on Tuesday as the U.S.-China trade dispute intensified with both nations implementing new retaliatory measures, according to Bloomberg.

The semiconductor sector, in particular, has faced heavy selling pressure from rising trade tensions. Washington has expanded restrictions on China’s access to advanced chips and threatened additional 100% tariffs, which would severely limit chip manufacturers’ ability to serve the Chinese market — a critical revenue source for companies like Intel ( INTC ).

Beijing has also tightened export controls on rare earths, which are essential materials used in semiconductor manufacturing. The move creates a supply chain squeeze where chipmakers face restricted access to both key markets and critical production materials.

Senior market analyst Daniela Sabin Hathorn noted that the risks of further escalation are limiting further upside in stocks given that broader markets were already overbought.

INTC Analysis: Intel ( INTC ) stock is not in overbought territory, according to the relative strength index (RSI). Intel ( INTC ) has an RSI of 46.79, signaling neutral momentum.

Despite Tuesday’s pullback, Intel ( INTC ) has demonstrated impressive performance, up 79.9% year-to-date, reflecting strong investor sentiment. The stock is trading significantly above its 50-day moving average of $27.42 and 200-day moving average of $22.90.

The immediate support level is identified at $35.91, which aligns closely with the stock’s recent price action. Should the stock continue to face downward pressure, this level may provide a cushion against further declines.

INTC Price Action: Intel ( INTC ) shares were down 2.36% at $36.34 on Tuesday at the time of publication, according to Benzinga Pro.

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