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Intel's Shares Once Dipped Over 4% Pre-market Over Cybersecurity Concerns

AInvestWednesday, Oct 16, 2024 7:24 am ET
1min read

Intel's stock once plummeted over 4% during pre-market trading, which is attributed to the Cybersecurity Association of China (CSAC)'s recommendation for a systematic investigation into the cybersecurity risks of Intel's products.

The CSAC has outlined four major concerns regarding Intel's products in its report, including frequent security vulnerabilities, poor reliability, disregard for user complaints, surveillance under the name of remote management, and backdoor design that endangers cyber and information security.

It is recommended that a network security review is initiated on the products Intel sells in China, so as to effectively safeguard China's national security and the legitimate rights and interests of Chinese consumers, CSAC said.

Intel has not responded to a request for comment. 

Notably, the Chinese market is a very critical place for Intel's products: nearly a quarter of Intel's global annual revenue of more than 50 billion US dollars comes from the Chinese market. In 2021, Intel's CPUs accounted for about 77% of the domestic desktop market and 81% of the notebook market; in 2022, Intel's share of the x86 server market in China was about 91%.

It can be said that Intel has made a fortune in China, but this company has instead repeatedly taken actions that damage Chinese interests and threaten China's national security, CSAC wrote in their reports.

It is unclear how Intel's sales in China will be affected by this recent recommendation, but it's certainly not helping Intel's recent reviving effort. Before the most recent condemnation from China's industry group, Intel has tried many ways to get itself back on track, including laying off more than 15% of its workforce and multiple significant business adjustments. Meanwhile, Rumors that Qualcomm is planning to acquire Intel have also been circulating in the market. However, this merger is also uncertain, as the latest report is Qualcomm will decide whether to complete this blockbuster acquisition after the U.S. elections in November.

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