10:20 AM EDT, 04/12/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

According to an unconfirmed WSJ report, China officials are pushing telecom carriers in the region to phase out foreign processors from the likes of INTC and AMD by 2027. This should come as a surprise to nobody, and we would anticipate more headline news in the future surrounding China's de-emphasis on U.S. designed chips across all industries given heightened geopolitical tensions with the U.S. We would also note that planned phase outs of U.S. chips fall in line with a target by the Chinese government to have 80% of domestic production of semiconductors by the end of the decade. Although it is impossible to tell exactly how much direct exposure any chipmaker has to the region (e.g., many chips are used to assemble a good in China that is then exported), we would view INTC at risk (27% of revenue in China) while NVDA has been able to successfully de-risk from the region (we estimate now at 6%-8% of sales). We would view communications providers (e.g., QRVO, SWKS, QCOM) as also at risk to China initiatives.