Intel (NASDAQ:INTC) stock edged up 3% Monday morning, recovering some of its recent losses as CEO Lip-Bu Tan prepares to meet with President Trump at the White House. This comes after Trump publicly demanded Tan’s resignation last week.
The Wall Street Journal reports that Tan is scheduled to meet with Trump on Monday to address concerns about his personal and professional background. The CEO aims to gain the president’s confidence by underscoring his loyalty to the U.S. and highlighting Intel’s critical role in national security through domestic manufacturing.
This meeting follows Trump’s post on Truth Social stating, “The CEO of INTEL is highly CONFLICTED and must resign, immediately,” in response to worries raised by Senator Tom Cotton regarding Tan’s ties to China. The scrutiny increased after Cadence Design Systems (NASDAQ:CDNS), where Tan served as CEO until 2021, agreed to plead guilty and pay over $140 million related to sales of chip-design technology to a Chinese military university.
Analysts at Lynx Equity Strategies believe Trump’s remarks may be aimed at pushing Intel to accelerate its manufacturing growth within the United States. They also suggest that the president could support Intel by encouraging data center firms to back Intel Foundry Services and contribute to funding the company’s R&D efforts in advanced semiconductor processes.
“Faced with a level of pressure few chief executives have, the Intel CEO may be forced to pivot and commit to an expansionary path. And that could be constructive for the stock,” Lynx analysts wrote, noting they are buyers of Intel shares ahead of the meeting.
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