In the volatile world of semiconductors, Intel Corp. finds itself once again at the center of political and market turbulence. On August 7, 2025, shares of the chip giant plummeted more than 5% in early trading, triggered by a pointed demand from President Donald Trump for the immediate resignation of Intel’s interim CEO, Lip-Bu Tan. Trump, posting on his Truth Social platform, labeled Tan “highly conflicted” due to alleged ties to Chinese firms, amplifying concerns over national security and Intel’s strategic direction amid U.S.-China tech rivalries.

This isn’t Intel’s first leadership shakeup in recent months. Tan stepped in as interim CEO following the abrupt departure of Pat Gelsinger in December 2024, a move that came after Intel’s board lost confidence in Gelsinger’s turnaround plan. According to a report from Reuters, Gelsinger was forced out after less than four years, with the company handing interim reins to two executives as it hunted for a permanent leader. Intel’s stock had already been battered, cratering amid missed opportunities in the AI boom and fierce competition from rivals like Nvidia.

Political Pressure Mounts on Chip Industry

Trump’s intervention escalated quickly, with the president citing Tan’s past investments in Chinese companies linked to the Communist Party. This echoed bipartisan worries, as noted in coverage from Fortune, where Trump wrote, “The CEO of INTEL is highly CONFLICTED and must resign, immediately.” The demand sent shockwaves through Wall Street, with Intel’s shares dipping to around $19.77, reflecting a broader market sensitivity to geopolitical risks.

Analysts point to Intel’s ongoing struggles: its market value has shrunk dramatically from $175 billion in 2005 to about $99 billion in 2025, starkly contrasting Nvidia’s meteoric rise. Posts on X (formerly Twitter) captured investor sentiment, with some users predicting further drops to $14, underscoring the pessimism. This latest episode compounds Intel’s woes, including a disastrous 2024 where it erased nearly $25 billion in value in a single day, as detailed in earlier CNN Business reporting on Gelsinger’s resignation.

Stock Volatility and Strategic Implications

The immediate market reaction highlights how political rhetoric can sway tech stocks. According to TASS, Intel’s shares plunged over 5% as Trump’s comments raised doubts about the company’s future under Tan, who has deep roots in venture capital with ties to firms cooperating with Chinese entities. This comes at a precarious time for Intel, which is pushing for domestic manufacturing incentives under the CHIPS Act, yet faces scrutiny over global supply chains.

Industry insiders argue that Trump’s demand could force Intel’s board into another hasty decision, potentially derailing recovery efforts. As CNBC reported on Gelsinger’s ouster, the company has been grappling with operational missteps, including delays in advanced chip production. With Tan’s interim role now under fire, speculation swirls about successors who might better navigate U.S. policy priorities.

Broader Market Repercussions

Beyond Intel, this saga underscores the intersection of politics and technology. Trump’s tariff threats and emphasis on “America First” in semiconductors could reshape industry dynamics, pressuring companies to sever foreign ties. Financial outlets like FinancialContent noted the stock slump’s ripple effects, with investors eyeing potential CHIPS Act funding cuts if leadership instability persists.

For Intel, the path forward involves not just stabilizing stock prices but rebuilding trust amid geopolitical headwinds. As one X post from analytics accounts highlighted, the drop to $19.77 amid the resignation furor signals a “national security firestorm.” With the board under pressure, the coming weeks may determine whether Intel can rebound or face further erosion in a fiercely competitive sector. Trump’s influence, combined with market forces, positions this as a pivotal moment for American chipmaking.