Intel stock fell Thursday after President Donald Trump called the chip giant's Chief Executive, Lip-Bu Tan "highly conflicted" and said he "must resign."
"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump said in a Truth Social post.
The post appeared to be in reaction to a Reuters report that Republican Sen. Tom Cotton has raised questions about Tan's ties to Chinese firms.
In a statement, Intel said the company, its board and Tan "are deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President's America First agenda."
Intel stock shed 3.1% to close at 19.77. Trump's comment surprised one longtime Intel stock analyst.
Intel Stock: Chip Giant's Struggles
"Um … what?" Stacy Rasgon of Bernstein Research told clients in a note.
Tan was named Intel CEO in March after the sudden exit of chip veteran Pat Gelsinger.
Sen. Cotton had sent a letter to Intel Chair Frank Yeary to "express concern about the security and integrity of Intel's operations and its potential impact on U.S. national security." Cotton also cited subpoenas sent to Cadence during Tan's time there as CEO before Intel hired him.
Tan is a respected chip industry leader which Rasgon, a veteran Intel analyst, underlined in his note to clients.
"Lip-Bu Tan's China activity is indeed substantial, though not a secret," he wrote. "Lip-Bu is a legend in the semi industry, and his ties to many companies, both in and out of China, are well known."
Tan took over as Intel CEO as the technology behemoth is struggling to regain its momentum.
Once the most dominant chip company in tech, the Silicon Valley icon has struggled to keep up with faster-moving rivals, led by Advanced Micro Devices and Nvidia.
Last month, Intel stock tumbled after the company reported a surprising loss.
Intel has dropped 10% this quarter. The shares have a Relative Strength rating of 22, according to IBD MarketSurge.
