Intel (INTC) stock fell sharply Thursday after former U.S. President Donald Trump publicly called for the immediate resignation of the chipmaker’s new CEO, Lip-Bu Tan. In a post on Truth Social, Trump stated that Tan is “highly CONFLICTED and must resign, immediately,” according to CNBC. He added that “there is no other solution to this problem,” triggering a notable sell-off in premarket trading. At last check, shares were down over 5%.
Intel has not issued an official response to the post, CNBC reported.Tan, who was named CEO in March 2025 following the departure of Pat Gelsinger, has become the center of political scrutiny amid Intel’s attempts to regain its competitive edge in the semiconductor industry.
Political pressure builds around CEO appointment
The pressure intensified this week after Senator Tom Cotton sent a letter to Intel’s board expressing concern over Tan’s ties to Chinese companies. According to CNBC, the letter cited a past criminal case involving Cadence Design Systems, where Tan served as CEO until 2021, and raised questions about the integrity of Intel’s operations and its compliance with U.S. national security standards.
CNBC, citing Reuters, noted that Tan has invested in several Chinese companies, some of which are believed to have links to China’s military, either directly or through venture funds. Cotton wrote that Intel “is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” arguing that Tan’s associations pose a potential risk.
Intel’s financial moves under tan’s leadership
Despite the political controversy, Intel reported better-than-expected earnings for the second quarter in July, according to CNBC. However, the report came with news of significant cost-cutting measures.
In a company-wide memo, Tan announced that Intel would scale back spending in its foundry division, which reported an operating loss of $3.17 billion. CNBC confirmed that the company cancelled planned fabrication projects in Germany and Poland and consolidated chip testing and assembly operations in Vietnam and Malaysia. Intel also decided to slow construction of its chip factory in Ohio once a flagship development project under Gelsinger’s leadership.
These decisions reflect Tan’s effort to shift Intel toward a leaner and more financially sustainable model amid mounting global competition and economic uncertainty.
Stock market reaction
Intel shares were down approximately 5.3% in premarket trading on Thursday, CNBC reported, last changing hands around $31.40 marking their lowest level in nearly three months. The reaction came immediately after Trump’s social media post.
While the company delivered solid earnings in Q2, ongoing concerns over leadership credibility, regulatory scrutiny, and the viability of its foundry strategy have kept investors cautious. Year-to-date, Intel shares have dropped roughly 18.5%, significantly underperforming rivals like NVIDIA and AMD, which have surged amid a global AI and data center boom, CNBC added.
Intel shares fell over 5% in premarket trading on August 7 after former President Trump publicly called for CEO Lip-Bu Tan to resign, citing national security concerns.