Intel Stock Drops Amid Political Pressure, AI Sector Shifts

Intel Corporation's stock (INTC) fell sharply after former President Donald Trump demanded the resignation of CEO Lip-Bu Tan, citing conflicts of interest. Shares dropped over 3.5% intraday, compounding a five-year decline of more than 50% as the chipmaker struggles to compete with Nvidia and AMD in the AI race.

The political firestorm intensified when Senator Tom Cotton questioned Tan's ties to China, noting Intel's $8 billion CHIPS Act funding. This scrutiny reflects broader tensions in U.S.-China tech relations, with Republicans increasingly scrutinizing corporate affiliations with Chinese entities.

While Intel stumbles, semiconductor rivals continue capitalizing on the AI boom. The episode underscores how geopolitical factors now weigh heavily on tech valuations, creating volatility opportunities for discerning investors.