Intel (INTC) shares are down more than 3% today after the U.S. president demanded that Lip-Bu Tan – the company’s chief executive – “resign immediately.”
According to President Donald Trump, Tan is “highly CONFLICTED” and there is “no other solution to this problem.”
Including today’s decline, Intel stock is down nearly 30% versus its year-to-date high set in February.
Why Is Trump’s Post Negative for Intel Stock?
Investors are choosing caution on INTC shares this morning as the president’s social media post highlights political and reputational risks tied to the company’s leadership.
An administrative demand for Tan to resign introduces meaningful uncertainty around corporate governance and strategic continuity.
Labeling him as “highly CONFLICTED” possibly due to ties with China-based businesses raises fears of national security scrutiny, especially amid heightened U.S.-China trade tensions.
Earlier this week, Sen. Tom Cotton, R-Ark wrote a letter to the chairman of the Intel board of directors questioning these alleged ties, including to Cadence Design Systems (CDNS), which just plead guilty to violating U.S. export controls.
All in all, Trump’s comment signals potential regulatory pressure and leadership instability ahead, risks that may further hurt Intel stock in the second half of 2025.
INTC Shares Continue to Face Challenges
Trump’s remarks add to a string of challenges facing Intel shares that made Seaport Global analysts maintained their “Sell” rating on the semiconductor company last week.
According to the investment firm, INTC stock isn’t worth owning despite an attractive valuation since it may continue to lose market share to competitors like Advanced Micro Devices (AMD), particularly in high-performance computing and AI-driven workloads.
Moreover, a recently announced NEX spinoff adds complexity to INTC’s corporate structure. It’s more of a defensive move than a growth catalyst, Seaport told clients in its latest research note.
Wall Street Sees Significant Upside in Intel
Despite several headwinds threatening Intel’s stock price recovery, Wall Street hasn’t really thrown in the towel on INTC shares yet.
While the consensus rating on the semiconductor stock remains at “Hold” only, the mean target of about $23 indicates potential upside of roughly 17% from here.
