Intel Stock Slips as Trump Says CEO ‘Must Resign, Immediately’

Shares of Intel (INTC) slipped Thursday after President Donald Trump called for new CEO Lip-Bu Tan’s immediate resignation.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote on his Truth Social network. “There is no other solution to this problem.”

Earlier this week, Sen. Tom Cotton (R-Ark.) sent a letter to Intel Chairman Frank Yeary in which he wrote that “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.” Tan formerly was CEO at Cadence Design Systems (CDNS), which recently pleaded guilty in a criminal case involving sales to China during his tenure.

“Given Trump’s history and past remarks, his call for CEO Lip-Bu Tan to resign shouldn’t be taken at face value or interpreted too literally,” Gabelli Funds portfolio manager Hendi Susanto said.

Intel stock was down 3% in recent trading to turn negative for the year.

Tan assumed the CEO role at the struggling chipmaker in March. Late last month, it was reported that Intel was looking to spin off its networking unit as it moves to shed assets under Tan.

“No one—and I mean no one—can turn Intel around overnight,” Susanto added. “Its challenges took years to build and will take years to fix.”

UPDATE—This article has been updated with quotes and the latest share price information.