Intel stock (NASDAQ: INTC) took a hit in premarket trading today, dropping more than 4% after President Donald Trump publicly called for CEO Lip-Bu Tan’s resignation.
The sharp selloff adds another layer of chaos for the chipmaker, which is already grappling with a tough financial and strategic stretch.
Trump’s statement posted on Truth Social accused Tan of having “highly conflicted” ties to Chinese semiconductor firms and insisted there’s “no other solution” but for him to step down.
The comments sparked immediate backlash and sent shockwaves through the market, deepening investor concerns about Intel’s leadership and direction just as it’s trying to steady the ship.
Intel CEO faces scrutiny over China ties
Intel’s got a real problem on its hands and it’s not just about chips. CEO Lip-Bu Tan is under fire over his past financial ties to China.
Between 2012 and 2024, he poured over $200 million into a wide mix of Chinese manufacturing and semiconductor firms. Some of those companies are reportedly linked to China’s military and the Communist Party.
Now, the national security crowd in Washington is paying attention.
Senator Tom Cotton, who chairs the Senate Intelligence Committee, sent a letter to Intel’s board chair, Frank Yeary, raising questions about whether Tan’s background compromises Intel’s role in US defense work. He wants to know exactly what the company is doing to manage the risk.
Intel put out a carefully worded response, saying it takes national security seriously and will address the senator’s concerns. Technically, investing in Chinese firms isn’t illegal.
But in today’s political climate, “not illegal” doesn’t mean “not a problem.” And that’s the tightrope Intel is walking right now.
Intel stock tumbles amid deepening crisis
Intel’s problems aren’t just political, they’re operational, too. The company is still digging itself out of a deep hole, announcing in recent weeks that it plans to cut jobs.
It’s a sharp turn away from the big-spending strategy of Intel’s previous leadership, and it comes on the heels of a string of underwhelming earnings.
Then there’s the foundry business, the big bet Intel made back in 2021. Right now, it’s in limbo. Without a major external client lined up, the case for continuing to pour money into advanced chip manufacturing looks weaker by the day.
Investors haven’t taken any of this lightly. The stock has been sliding for more than a week, with a seven-day losing streak wiping out about $15 billion in market value, an 18% drop.
The sell-off reflects growing anxiety around Intel’s long-term prospects: weak financials, mounting competition, and now, a full-blown leadership controversy just to top it all off.
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