Intel Stock Surges 5% as CEO Meets Trump, Reversing Prior Resignation Demand Over China Ties

Intel's stock, $INTC, saw a significant surge of over 5% today following news of a meeting between its CEO, Lip-Bu Tan, and President Donald Trump at the White House. This development marks a dramatic reversal from just four days prior, when President Trump had publicly demanded Tan's immediate resignation over alleged ties to Chinese firms. The unexpected meeting has fueled speculation about a potential strategic alignment or "trade deal" between the tech giant and the administration.

The President's earlier call for Tan's departure was made on his social media platform, Truth Social, where he stated, > "The CEO of INTEL is highly CONFLICTED and must resign, immediately." This demand stemmed from concerns raised by Republican Senator Tom Cotton regarding Tan's past investments in Chinese companies, some reportedly linked to the Chinese military. The initial demand had caused Intel's stock to decline.

Following the high-stakes meeting, which included Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, President Trump described the discussion as "very interesting." He also praised Tan, remarking on > "His success and rise is an amazing story." Intel confirmed the engagement, stating that Tan had a "candid and constructive discussion" with the President focused on strengthening U.S. technology and manufacturing leadership.

Lip-Bu Tan, who assumed the CEO role in March, has faced scrutiny over his extensive ties to Chinese firms through his venture capital activities, and his previous company, Cadence Design Systems, had a criminal case related to illegal exports to China. Intel, a critical player in the U.S. semiconductor industry and a recipient of substantial CHIPS Act subsidies, is currently undergoing a significant turnaround effort to regain its competitive edge against rivals like Nvidia in the booming AI chip market. The company has pledged to work closely with the administration to "restore this great American company."

The immediate market reaction, with Intel's stock rallying, underscores the impact of presidential rhetoric on corporate valuations. This rare instance of a U.S. president directly intervening in a private company's leadership highlights the administration's assertive stance on strategic industries, particularly semiconductors, amid the ongoing U.S.-China technology rivalry. Analysts are now watching closely for any concrete outcomes or policy shifts that might emerge from this renewed engagement.