Intel (INTC) shares are down more than 9% as of this writing on April 4 after China announced a 34% retaliatory tariffs on all American goods. 

Beijing’s retaliation is significant for INTC as it currently has meaningful revenue exposure to the largest Asian economy. Investors are concerned because China’s new tariffs add to an already long list of challenges facing Intel.  

Intel stock is now down more than 20% versus its year-to-date high in mid-February. 

Why Is Intel Stock Down on Friday?

China brought in about $15.5 billion in revenue to Intel last year, which translated to nearly 30% of the company’s overall revenue in 2024.  

But the country’s new tariffs on U.S. products will now make Intel chips more expensive for its local businesses, potentially driving them to rivals, including Samsung, Huawei, and Taiwan Semi (TSM). 

This could lead to significant pressure on Intel’s top line moving forward, which may prove dire, given the chipmaker is already grappling with maintaining its market share against the likes of Nvidia (NVDA) and Advanced Micro Devices (AMD).

Versus their 52-week high, INTC shares are down nearly 50% at the time of writing. 

Should You Buy the Dip in INTC Shares?

While China’s new tariffs are broadly negative for the chipmaker, Timothy Arcuri, a UBS analyst, remains somewhat bullish on Intel stock for 2025. 

Arcuri is constructive primarily because TSMC has reportedly agreed to a joint venture with Intel that would see it take a 20% stake in INTC’s foundry business. 

“This would infuse capital and operational know-how into Intel’s foundry business,” he told clients in a research note on Friday. 

Additionally, the analyst has confidence in the leadership of Lip-Bu Tan, an industry veteran who joined INTC as its chief executive last month. Arcuri’s $23 price target on Intel shares indicates potential upside of nearly 14% from here.  

Street Is Bullish on Intel’s New CEO

Wall Street seems convinced that Lip-Bu Tan can engineer a much-anticipated turnaround at Intel.  

While the consensus rating on INTC stock currently sits at “Hold,” the mean target of $24.43 still suggests potential upside of about 20% from here.