12:25 PM EDT, 05/08/2024 (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:

The U.S. Department of Commerce has revoked certain licenses for exports of consumer items (e.g., phones and laptops) to Huawei in China, effective immediately. Intel and Qualcomm ( QCOM ) were both targeted. As a result, Intel now says Q2 revenue will come in below the midpoint of its prior guidance range of $12.5 billion-$13.5 billion. We anticipate no change to Qualcomm's ( QCOM ) revenue outlook provided last week, as the company already cited that it planned to completely stop shipments to Huawei by the end of the calendar year. While the impact on the industry is not a needle mover, China remains a long-term risk to the supply chain. Investors should expect more sanctions to come through the pipeline given geopolitical issues (the U.S. could look to extend chip bans to several China players that supply to Huawei). The upcoming election this fall also adds to uncertainty, but expectations are that both Biden and Trump will hold a tough stance to China-based companies in an effort to preserve the IP of U.S. chipmakers.