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Investing.com -- Intel (NASDAQ:INTC) stock rose 3% Monday morning, paring recent declines as CEO Lip-Bu Tan prepares for a White House meeting following President Trump’s demand for his resignation last week.
According to a Wall Street Journal report, Tan is expected to meet with Trump on Monday to discuss his personal and professional background after the president called for his immediate resignation over alleged ties to Chinese businesses. The CEO reportedly hopes to win Trump’s approval by demonstrating his commitment to the United States and emphasizing Intel’s manufacturing capabilities as a national security priority.
The meeting comes after Trump posted on Truth Social that "The CEO of INTEL is highly CONFLICTED and must resign, immediately," following concerns raised by Senator Tom Cotton about Tan’s connections to China. Scrutiny intensified after Cadence Design (NASDAQ:CDNS) Systems, which Tan led until 2021, agreed to plead guilty and pay over $140 million for selling chip-design products to a Chinese military university.
Lynx Equity Strategies analysts suggest Trump’s criticism may be aimed at pressuring Intel to restart manufacturing expansion in the U.S. They note that the president could potentially help by encouraging data center companies to commit to Intel Foundry Services and partially fund Intel’s R&D for advanced 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, adding they are buyers of the stock ahead of the meeting.