Intel was gaining with CEO Lip-Bu Tan out of President Donald Trump's firing line but there's a bigger prize to be won.
Key Points in This Article: Nvidia and Advanced Micro Devices secured export licenses to China, but have to surrender 15% of any chip sales revenue.
The chip maker's future was dangling by a thread even before its CEO controversy.
Shares of Intel (INTC) surged Monday as CEO Lip-Bu Tan visited the White House, drawing praise from President Trump just days after calls for his resignation.
President Trump wrote in a Truth Social post on Monday that he met with Intel CEO Lip-Bu Tan. "His success and rise is an amazing story," Trump wrote.
Intel faces existential challenges, including lost AI chip market share, foundry losses, and leadership capabilities coming into question, despite early efforts. Reduced operating and capital costs can support Intel's operations, improving profitability as the organization regains its technology footing. Despite increasing leverage and ongoing foundry struggles, Intel's valuation is attractive, trading at a discount to peers and offering long-term upside potential.
Intel Corporation's White House meeting could yield a defense-focused deal, leveraging the CHIPS Act and aligning Intel with national security priorities for mutual benefit. Recent controversies on CEO Li Bu Tan are just a Trump negotiating tool in my view; I see the stock as undervalued, trading at a significant discount to semiconductor peers on forward sales metrics. Intel's financials remain pressured by restructuring and heavy capex, but cost-cutting and targeted investments could drive a turnaround if executed well.
Intel Corp (NASDAQ:INTC, ETR:INL) shares added more than 5% on reports its CEO Lip-Bu Tan's scheduled visit to the White House, following a public call from President Donald Trump demanding Tan's resignation. According to a report by the Wall Street Journal citing unnamed sources, Tan is set to meet with Trump on Monday to discuss his personal and professional background and to explore potential areas for collaboration between Intel and the US government.
Major U.S. equities indexes were little changed in recent trading ahead of key corporate earnings and inflation data due later in the week.
Shares of Intel (INTC) surged following a report CEO Lip-Bu Tan is set to visit the White House today after President Trump called for his resignation last week.
Intel's turnaround is at risk given political criticism of CEO Lip-Bu Tan. Can he and Trump work together to resurrect U.S. chip making?
Intel CEO Lip-Bu Tan is scheduled to visit the White House on Monday following President Donald Trump's call last week for his ouster over ties to China, according to a new report.