'An Amazing Story': Intel Stock (NASDAQ:INTC) Jumps After Tan Meets With Trump

Business Insider

3 days ago

And just like that, things started looking up for chip stock Intel (INTC). You remember just yesterday, when CEO Lip-Bu Tan was under fire from President Trump, who called for his removal? Well, what started out as ' no other solution to the problem ' sure turned into an amazing story pretty quickly. In fact, that was exactly what President Trump had to say following his meeting with Lip-Bu Tan, and that was good enough for Intel investors. Intel investors sent shares climbing over 5% in Tuesday afternoon's trading.
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Trump referred to Lip-Bu Tan as having an 'amazing story,' especially considering Tan's involvement in Walden International and Cadence Design Systems (CDNS). Tan, in a message to Intel employees, noted that there was 'misinformation' around his roles therein, and that he had '…always operated within the highest legal and ethical standards.'
And Trump, perhaps understandably, was concerned about some of what had been going around about Tan's past involvement with companies, including some companies that later had connections to the People's Liberation Army in China. But those concerns seemed to go out the window as Trump later said, 'I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent. The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.'
Speaking of Suggestions
Based on what we have heard so far, the meetings between Trump and Tan may not be over, but rather, beginning. Trump noted that there would be further meetings, particularly between Tan and Trump's various cabinet members.
Despite this, no one made any mention of just what Trump's cabinet would be talking to Lip-Bu Tan about in the next several days. There are certainly plenty of possible topics, ranging from CHIPS Act payments to tariffs on processors to even how to get Intel back up and running to the point where the United States has a major chipmaker in its arsenal again.
Is Intel a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on INTC stock based on one Buy, 26 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 0.88% rally in its share price over the past year, the average INTC price target of $22.10 per share implies 1.84% upside potential.