Why Intel Stock Is Crashing Following CEO's 'Alleged Conflict' and Trump Outcry

Core Viewpoint - Intel is facing significant challenges due to leadership turmoil, political interference, and market instability, which could impact investors and retirement funds in the tech sector [1] Company Performance - Intel's stock value has dramatically declined in 2024, losing over 60% of its market capitalization [2] - The company reported a net loss of $11.6 billion for 2024, with restructuring charges of $1.9 billion in Q2 2025 [9] - Intel plans to reduce its workforce from approximately 96,400 employees to around 75,000, eliminating over 21,000 jobs [10] Leadership and Governance Issues - Scrutiny over CEO Lip-Bu Tan's personal investments and potential conflicts of interest has intensified, particularly following public criticisms from former President Donald Trump [2][3] - Senator Tom Cotton's letter raised concerns about Tan's investments in firms linked to defense suppliers and questioned the Intel board's oversight [4] - Intel has introduced new policies requiring Tan to recuse himself from decisions involving personal financial interests, but critics argue this offers only partial independence [12] Strategic Investments and Controversies - Tan's dual role as CEO and his venture capital investments have raised questions about conflicts of interest, particularly regarding Intel's interest in companies like Rivos and SambaNova [6][7][8] - The controversy surrounding Tan's involvement with Rivos led to internal disagreements and a significant increase in Rivos' valuation when Meta entered the bidding process [7] Future Outlook - Despite setbacks, Intel remains the only American company capable of producing advanced chips domestically and has pledged to invest $100 billion in US chip manufacturing [11] - The US government relies on Intel for secure supply chains in defense, AI systems, and critical infrastructure [11] - Analysts question whether ongoing political pressure and unresolved conflicts of interest will hinder the company's recovery and affect shareholder value [13]