From Nasdaq: 2025-05-26 16:30:00

Tensions between the US and China have eased slightly with a 90-day pause on tariffs, but the trade war is far from over. Rare earths are crucial for tech companies like Intel, which relies heavily on these minerals. Intel’s growth plans could be at risk if the trade war escalates again. China dominates the global supply of rare earths, posing a significant risk to Intel’s supply chain. Insufficient rare earths could hinder Intel’s ability to produce new products and impact data center growth.

Intel announced a restructuring plan after a challenging 2024, aiming to reduce expenses and grow its foundry business. The company expects to start high-volume production of Intel 18A in 2025, supporting the launch of Panther Lake. While a shortage of rare earths could impede growth, investors should also consider Intel’s rich valuation and uncertainty surrounding trade with China. It may be wise for risk-averse investors to monitor Intel from the sidelines.



Read more at Nasdaq: Here’s How Intel Could Be Affected by the United States’ Rare Earths Trade With China