Intel (INTC) shares are extending gains this morning after President Donald Trump said he’s met with Lip-Bu Tan, the chipmaker’s current chief executive, and even called him a “success.”
The president’s remarks are significant since they arrive only days after he called Tan “highly CONFLICTED” and demanded that he resigns immediately.
Intel stock hasn’t done much for its investors this year. At the time of writing, it is up just 7.6% in the year to date.
What Trump’s Reversal on Lip-Bu Tan Means for Intel Stock
INTC shares are pushing to the upside following Trump’s positive comment on Lip-Bu Tan as it effectively eliminates the risks of regulatory scrutiny and reputational damage.
It reduces uncertainty around executive stability and signals renewed political support for Intel’s leadership and strategic direction.
Additionally, the president’s social media post also suggests potential alignment between Intel and federal policy, especially on domestic chip manufacturing.
In the long run, this government endorsement could help INTC reclaim its long-lost glory in the semiconductor industry, paving the way for a sharp rebound in Intel stock.
Should You Buy INTC Shares at Current Levels?
While Trump’s reversal on Lip-Bu Tan is not an all-clear for INTC stock, it’s reasonable to consider owning it at current levels primarily because Intel is actually a matter of national security for the United States.
“It’s the only leading-edge U.S.-based foundry. If we lose Intel, we have a serious national security risk, and then prices of TSMC will go up,” Patrick Moorhead, the founder of Moor Insights, told CNBC in a recent interview.
Note that Intel shares are currently trading at an attractive price-sales (P/S) ratio of 1.64x only.
How Wall Street Recommends Playing Intel
While the consensus rating on Intel shares currently sits at “Hold” only, Wall Street firms, nonetheless, forecast at least some upside in them from current levels.
At the time of writing, analysts have a mean target of just over $23 on INTC stock, indicating potential for another 6% rally from here.
