Eli Lilly Sinks After Obesity Pill Shows Mixed Results
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Yahoo
29 minutes ago
- Yahoo
Intel's new CEO had 3 major problems to tackle. This week he got a new one.
Intel (INTC) CEO Lip-Bu Tan came aboard the troubled chipmaker in March with multiple harrowing tasks: deciding the fate of the company's cash-bleeding manufacturing division, stemming losses in its legacy computer chip business, and catching up in the AI race. Now he has another, arguably more daunting problem: President Trump. Trump called for Tan's resignation in a post early Thursday on his social media platform, Truth Social, writing, "The CEO of INTEL is highly CONFLICTED and must resign, immediately." The post came minutes after Fox Business covered recent criticism of the CEO from Republican Sen. Tom Cotton over his ties with China. In April, a Reuters report detailed Tan's wide-ranging investments in Chinese companies made through his VC firm, Walden International. The outlet found that the firm "remains invested in 20 funds and companies alongside Chinese government funds or state-owned enterprises, according to Chinese corporate databases." Cotton wrote a letter to Intel chairman Frank Yeary on Wednesday, saying he felt "concern about the security and integrity of Intel's operations and its potential impact on U.S. national security," given those ties. Tan responded in a memo to employees posted on Intel's website late Thursday, saying there was "a lot of misinformation circulating about my past roles." He went on to express his love for the United States, where he's lived for more than 40 years. "We are engaging with the Administration to address the matters that have been raised and ensure they have the facts," he wrote. "I fully share the President's commitment to advancing U.S. national and economic security, I appreciate his leadership to advance these priorities, and I'm proud to lead a company that is so central to these goals." Intel is the only remaining large-scale US-based advanced chip manufacturer and has contracts with the Department of Defense. Most of the world's advanced chips are made by Taiwanese contract chip manufacturer TSMC ( which is expanding its US footprint with a $165 billion investment to build factories in Arizona. 'No AI story' While Tan contends with a newfound adversary in Trump, he's still on the hook to solve massive issues at Intel that he inherited from his predecessor, Pat Gelsinger. For one, Intel's legacy business making CPUs, or central processing units, is losing its dominance, forfeiting market share to Advanced Micro Devices (AMD) and Arm (ARM). Intel's revenue share of the market for CPUs in desktops, for example, fell to around 66% in the first quarter of 2025 from 81% the prior year, according to Mercury Research data obtained by investing firm Bernstein. At the same time, Intel's attempts to debut AI data center chips to compete with Nvidia have fallen flat. Its Gaudi 3 AI chip was supposed to produce $500 million in revenue in 2024 — a projection far below the billions of dollars in sales seen by Nvidia (NVDA) and AMD that the company laid out last April. Intel never said whether it met the target. The company canceled its latest AI chip called Falcon Shores but has said in earnings calls that it's developing another chip called Jaguar Shores. The Wall Street Journal reported Thursday that Tan had been exploring the acquisition of an AI business. Intel's board took its time deliberating the deal, however, and another company is now poised to buy it instead. Intel declined to comment on the alleged acquisition attempt. "They've got no AI story," Bernstein analyst Stacy Rasgon told Yahoo Finance Friday. Tan said in a July earnings call that "Intel has traditionally been weak or entirely absent" in the AI space but intends "to incubate and grow" under his leadership. He said he will share more about the company's AI strategy "in the coming months." At the same time, Intel is struggling to revive its manufacturing business. Intel both designs and produces its own chips. In 2021, under Gelsinger, the company opened up its manufacturing division to outside customers. But Intel has struggled to secure clients, and its roadmap to introduce new manufacturing technology to produce more advanced semiconductors has been repeatedly pushed back. Its latest 18A tech was initially supposed to roll out in the first half of 2025 and is now slated to debut in 2026. Tan left the fate of 14A — a manufacturing process technology that was set to come after 18A — unclear in the company's latest earnings call, which helped send the stock spiraling. Still, analysts say Tan is Intel's best hope of succeeding in a turnaround, if it can at all. Tan has served on boards and in various executive roles at 14 firms in the semiconductor space, most notably including his tenure as CEO of Cadence Design Systems, a chip design software company. Prior to becoming Intel's CEO, he was a member of the company's board but left due to disagreements with Gelsinger, according to a Reuters report last year, which Intel declined to comment on. Investors cheered Tan's appointment in March, with the stock rising as much as 15% on the news. "Lip-Bu is a legend in the semi industry, and his ties to many companies, both in and out of China, are well known," Bernstein's Rasgon wrote in a note to investors Thursday following Trump's Truth Social post. Stifel analyst Ruben Roy told Yahoo Finance in an email Friday, "I believe that LBT [Lip-Bu Tan] is one of probably a very small group of people [in] the world that I think can help put INTC on the right path. That view is unchanged." Of his company Walden International's investments in China, Roy wrote, "I think he is an absolute visionary and of course he will have made investments in strong tech companies globally through his VC firm." Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29 minutes ago
- Yahoo
Trump removes Billy Long as IRS commisioner less than 2 months after his confirmation
WASHINGTON (AP) — President Donald Trump has removed former U.S. Rep. Billy Long as IRS commissioner less than two months after his confirmation, a White House official said Friday. The official, who was not authorized to speak publicly and spoke on condition of anonymity, did not give a reason for the dismissal. Treasury Secretary Scott Bessent will serve as acting commissioner, the official said. The Senate confirmed Long on a 53-44 vote despite Democrats' concerns about the Republican's past work for a firm that pitched a fraud-ridden coronavirus pandemic-era tax break and about campaign contributions he received after Trump nominated him. While in Congress, where he served from 2011 to 2023, Long sponsored legislation to get rid of the IRS. A former auctioneer, Long has no background in tax administration. Fatima Hussein, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29 minutes ago
- Yahoo
White House to Clarify Gold Tariffs After Ruling Sparked Chaos
(Bloomberg) -- The Trump administration suggested it would issue a new policy clarifying that imports of gold bars shouldn't face tariffs, after a US government agency stunned traders by formally ruling that they'd be subject to duties. All Hail the Humble Speed Hump Three Deaths Reported as NYC Legionnaires' Outbreak Spreads Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Major Istanbul Projects Are Stalling as City Leaders Sit in Jail Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms The administration intends to post an executive order in the near future to clarify what it called misinformation about the tariffing of gold and other specialty products, a White House official told Bloomberg in a written statement. The official detailed the plans Friday on condition of anonymity. Futures prices on New York's Comex pared gains and the global benchmark for spot prices in London fell after the White House statement. The price differential between the two key trading hubs collapsed below $60 an ounce, after earlier surging to above $100 in response to the initial tariff shock. The chaos that shook the bullion markets in the past 23 hours came after details emerged of a US Customs and Border Protection ruling that said one-kilogram and 100-ounce gold bars are subject to so-called reciprocal tariffs. The ruling, posted on the agency's website, came after a Swiss refiner sought clarity on the levies. Such a directive would bring sweeping implications for bullion around the world and could have disrupted the functioning of the US futures contract. Gold-related equities also quickly dropped after the White House statement, with larger gold mining stocks including Newmont Corp. and Agnico Eagle Mines Ltd. immediately erased earlier gains, as did gold royalty provider Franco-Nevada Corp. and funds like the VanEck Gold Miners ETF. Gold has a unique role as a financial asset and global currency, making it different from copper, steel and aluminum — other metals that have been hit by Trump's tariffs. Shipments were freezing up in response to the decision that gold imports would face US duties, traders said earlier Friday. A White House order clarifying its position would serve to calm the market chaos caused by fears of a tariff on gold imports. Trump administration officials have repeatedly vowed the president's second-term tariffs won't be marked by exemptions, after a host of exclusions granted his first four years in office were seen as undermining the effectiveness of previous levies. --With assistance from Geoffrey Morgan and Jack Ryan. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Sign in to access your portfolio
