Intel Corporation (NASDAQ: INTC) saw its shares plunge over 8% after Barclays lowered its price target on Intel stock from $23 to $19, citing growing concerns about the US-China trade war, semiconductor tariffs, and weakening demand in the global tech market.

Barclays analyst Tom O’Malley maintained an “Equal Weight” rating but updated his forecast to reflect mounting risks tied to China’s consumer tech market and possible headwinds from expanded tariff policies. The downgrade comes just ahead of Intel’s anticipated Q1 earnings report, intensifying investor worries over geopolitical instability and its impact on semiconductor companies.

The revised forecast comes amid broader market conversations around AI-driven growth, particularly in the semiconductor sector. Intel continues to invest heavily in AI hardware and infrastructure, but analysts remain cautious due to global supply chain risks, volatile trade policies, and intensified competition from Nvidia, AMD, and emerging AI chipmakers.

Despite the downgrade, Intel is still featured on several analyst watchlists as a notable AI stock. According to hedge fund data from Q4 2024, 83 major hedge funds currently hold INTC in their portfolios, positioning it as the 10th most discussed AI stock in Insider Monkey’s latest list.

Meanwhile, a report from the International Monetary Fund (IMF) highlights the macroeconomic boost expected from AI adoption, estimating a 0.5% annual increase in global GDP through 2030. While these gains are promising, challenges like rising energy consumption, carbon emissions, and the unequal distribution of AI benefits globally continue to dominate headlines.

Intel’s exposure to these shifting dynamics—both as a chipmaker and an AI enabler—places it at the center of investor debate: Is Intel still a buy amid trade war pressures and AI optimism? The answer remains uncertain.

For investors looking for higher-return AI stocks in 2025, analysts suggest looking beyond Intel. Several under-the-radar AI companies have surged while more well-known names like INTC, NVDA, and AMD faced price corrections this year. One low-PE AI stock, in particular, is attracting hedge fund interest for its potential upside and competitive valuation.

Key Takeaways:

• Intel stock downgraded by Barclays to $19 amid tariff and China risk.

• INTC shares fell over 8% following the announcement.

• Trade war concerns weigh on semiconductor sector outlook.

• Intel ranks among the top 10 AI stocks analysts are tracking in 2025.

• Investors may want to explore cheaper, high-growth AI alternatives.