Intel Stock Plunges Amid Strategic Pivot Under New CEO

Intel shares tumbled to $20.70 in New York, marking their steepest single-day drop in over three months after CEO Pat Tan announced a dramatic shift in semiconductor manufacturing strategy. The sell-off followed Tan's critique of predecessor Pat Gelsinger's "excessive and unwise" foundry expansion plans during Thursday's earnings call.

The new leadership is adopting a cautious approach to its advanced 14A node development, delaying full-scale production until securing sufficient customer commitments. This departure from Intel's traditional "build-it-and-they-will-come" philosophy has raised concerns about the company's ability to maintain its chipmaking dominance as competitors like TSMC advance.

Market speculation about potential divestitures intensified after reports surfaced that interested parties for Intel's fabrication facilities have withdrawn. Tan maintains the company will preserve its integrated design-manufacturing model while offloading non-core assets.