Intel Stock (INTC) Plummets as Trump Calls for CEO to Resign

Shares in Intel Corporation stock (INTC) are dropping on Thursday following US President Donald Trump’s call for Intel’s CEO to resign. The stock is down over 3.5% since trading started. “The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote on Truth Social, the social media platform he owns. “There is no other solution to this problem. Thank you for your attention to this problem!”

CEO Lip-Bu Tan took command at Intel earlier this year to rescue the struggling tech giant. Amid the surge in the AI sector, Intel has fallen behind, and its stock is down over 50% in the past five years. On the flip side, companies like AMD and Nvidia are up, and continue to beat out Intel in the AI race. At press time, INTC stock is trading below $19.75.

Trump’s post also came a day after one of his top Senate allies, Republican Tom Cotton, wrote a letter to Intel’s board chair questioning Tan’s China ties. “Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote, pointing to Intel’s nearly $8 billion grant from the CHIPS Act. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.” With US-China relations still on the fence, Republicans are looking at companies with Chinese ties skeptically. Trump has even pledged to make the US the AI capital of the world, raising tariffs on chip manufacturing from abroad.

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In late July, Intel shares sank after the company reported that it would cut its workforce by 15% in an attempt to pare costs as it struggles to revive its ailing chip manufacturing business. Additionally, back in June, Intel disclosed plans to lay off 271 employees in California. It notified officials in Arizona on Monday that it plans to lay off 172 people there. “Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” Intel said Monday in a statement on this week’s layoffs.

Furthermore, Intel (INTC) is also discontinuing its automotive technology business and laying off most of the workers in that segment. Automotive is not among Intel’s largest businesses, but the company has processors in 50 million vehicles, and is another area where spending is high. Intel (INTC) stock is just barely up 1% year-to-date.