Pressure on CEO Lip-Bu Tan intensified after public remarks from a former president called for his immediate resignation, citing potential conflicts related to reported ties with Chinese entities. Tan, who assumed the CEO role in March 2025, is navigating both political scrutiny and legislative inquiries into his past executive positions, placing his strategic agenda under close investor and regulatory watch. Intel shares dropped by just over 3% during Tuesday’s session, underperforming the broader semiconductor sector which saw gains in both peer group and market benchmarks. Trading volume spiked to 130.1 million shares, more than 50% above the company’s three-month daily average, suggesting heightened investor interest and short-term positioning around the stock. In response to competitive headwinds in the AI chip market, management announced a renewed focus on edge computing solutions, a cost-cutting program targeting $15 billion in expense reductions over the next two years, and prioritized investment in foundry operations. The company plans to slow or delay projects in Europe and North America that lack pre-commitments, reallocating resources toward its 18A chip node rollout and customer-backed 14A process, with the goal of restoring profitability in its manufacturing segment by the end of the decade.
Pressure on CEO Lip-Bu Tan intensified after public remarks from a former president called for his immediate resignation, citing potential conflicts related to reported ties with Chinese entities. Tan, who assumed the CEO role in March 2025, is navigating both political scrutiny and legislative inquiries into his past executive positions, placing his strategic agenda under close investor and regulatory watch. Intel shares dropped by just over 3% during Tuesday’s session, underperforming the broader semiconductor sector which saw gains in both peer group and market benchmarks. Trading volume spiked to 130.1 million shares, more than 50% above the company’s three-month daily average, suggesting heightened investor interest and short-term positioning around the stock. In response to competitive headwinds in the AI chip market, management announced a renewed focus on edge computing solutions, a cost-cutting program targeting $15 billion in expense reductions over the next two years, and prioritized investment in foundry operations. The company plans to slow or delay projects in Europe and North America that lack pre-commitments, reallocating resources toward its 18A chip node rollout and customer-backed 14A process, with the goal of restoring profitability in its manufacturing segment by the end of the decade.