Information of CEO Lip‑Bu Tan’s White Home assembly is piquing investor curiosity.
Shares of Intel (INTC 3.76%) are transferring greater on Monday, and had been up 3.9% as of 1:58 p.m. ET and as a lot as 8.3% earlier within the day. The spike comes because the S&P 500 and Nasdaq Composite had been comparatively flat.
The struggling chipmaker’s inventory obtained a bump from information that its CEO, Lip-Bu Tan, will meet with President Donald Trump simply days after he referred to as for the CEO’s resignation.
A high-stakes assembly
The Wall Avenue Journal reported that Tan would be the newest tech chief to make a visit to the White Home. This assembly might have greater stakes than many others. Final week, President Trump mentioned that Tan ought to resign instantly resulting from his ties to the Chinese language authorities.
Traders in Tan’s enterprise capital agency Walden Worldwide embody U.S. authorities pension funds, main college endowments, and different backers that do not elevate any purple flags. Nonetheless, the fund additionally has investments from the Chinese language authorities and Semiconductor Manufacturing Worldwide (SMIC), the most important semiconductor maker in China. SMIC is underneath sanction by the U.S. authorities.
Picture supply: Getty Photos.
Intel is likely one of the few U.S. chip producers with actual capability
Tan is simply months into his tenure as CEO of Intel, which desperately wants to show its operations round. If he’s pressured out, it might throw the corporate additional into turmoil at a particularly delicate time.
The assembly gave traders hope that this final result may very well be prevented. Moreover, it presents the likelihood that Tan may abandon his plans to scrap Intel’s next-generation semiconductor manufacturing; the Trump administration locations a excessive worth on home manufacturing, particularly within the very delicate semiconductor business. Nonetheless, at this level, any ideas on what this assembly may result in are pure conjecture.
Intel continues to battle, and its path to relevance within the uber-crucial AI maket is unclear. Nonetheless, on condition that the corporate is likely one of the few with important home semiconductor manufacturing capabilities and the strategic significance of these capabilities, I nonetheless suppose Intel is an effective decide for traders with an urge for food for threat.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Intel. The Motley Idiot recommends the next choices: quick August 2025 $24 calls on Intel. The Motley Idiot has a disclosure coverage.
