Shares of Intel (NASDAQ:INTC) tumbled more than 3% after former President Donald Trump publicly called for the resignation of Intel CEO Lip-Bu Tan, accusing him of being “highly CONFLICTED.” The sharp remarks injected fresh political risk into the Intel stock outlook, already challenged by weak performance and competitive pressures in the chipmaking space.
With shares already down nearly 30% from their February 2025 high, this latest controversy threatens to further shake investor confidence. Let’s unpack what Trump’s post means for Intel’s leadership, stock performance, and future outlook.
Trump’s Criticism Raises Red Flags for INTC
Trump’s message, posted early Wednesday morning, claimed there was “no other solution” but for Tan to resign, citing alleged conflicts of interest. While the post lacked specifics, the timing aligns with mounting concerns about Tan’s reported business ties to companies with operations in China.
Earlier this week, Sen. Tom Cotton (R-Ark.) raised similar concerns in a letter to Intel’s board, referencing Cadence Design Systems (NASDAQ:CDNS)—a company previously linked to Tan’s business network—which just pled guilty to violating U.S. export controls.
These developments have put a spotlight on Intel’s leadership at a sensitive time, especially as U.S.-China tech tensions escalate. For investors, the Intel stock outlook is now clouded by fears of national security scrutiny, possible regulatory investigations, and abrupt executive turnover.
Intel Faces Broader Structural Challenges
Even before Trump’s attack, Intel was struggling. Last week, analysts at Seaport Global maintained a rare “Sell” rating on INTC shares. They noted the company’s declining market share, especially to Advanced Micro Devices (NASDAQ:AMD), in key sectors like AI and high-performance computing.
While Intel has attempted to reposition itself with strategic changes—such as the newly announced spinoff of its Network and Edge (NEX) business—Wall Street remains skeptical. Seaport analysts see the spinoff not as a bold growth play but as a defensive restructuring effort meant to stop further bleeding.
In short, the Intel stock outlook was already under pressure from operational inefficiencies, delayed product rollouts, and competitive missteps before this political storm even hit.
Some Analysts Still See Upside
Despite the growing uncertainty, Wall Street hasn’t completely lost faith. The average analyst price target for Intel stock (NASDAQ:INTC) sits at around $23, implying about 17% upside from current levels. However, the stock holds a consensus rating of only “Hold,” showing that analysts remain on the fence.
Some bulls argue that Intel’s attractive valuation, government subsidies under the CHIPS Act, and legacy infrastructure still offer long-term value. But any optimistic Intel stock outlook now hinges on whether the company can maintain leadership continuity, rebuild trust, and stabilize operations amid growing political scrutiny.
The Road Ahead for Intel Stock
While Trump’s criticism may not directly lead to Tan’s resignation, it adds to a mounting list of hurdles Intel must overcome. Between political headwinds, fierce competition from AMD, and internal structural changes, Intel investors face an unpredictable path forward.
Should Tan step down under pressure, it could usher in further volatility—both in the markets and within the company’s strategic vision. If he stays, the company may face prolonged reputational risk and potential government intervention.
For now, the Intel stock outlook remains murky. Traders should brace for more turbulence ahead and watch closely for any boardroom shifts, regulatory actions, or guidance updates in the coming weeks.
Featured Image: Pexels @ Pok Rie
Author Stephanie Bédard-Châteauneuf 
