Intel Stock Drops 8%: Is This the Right Time to Buy the Dip in INTC?

Intel’s Rollercoaster: From Rally to Reversal

Intel (INTC) stock tumbled 8% today, wiping out part of yesterday’s dramatic 20% rebound, which followed the U.S. administration’s announcement of a temporary pause on tariffs for most countries—except China. That brief surge had pulled Intel back from a breakdown to 2010 support levels, triggered earlier in the week.

However, today’s session brought a sharp reversal as broader market volatility returned, fueled by renewed U.S.–China tensions and investor profit-taking. At some point INTC shares were trading -12% at $19.16, but reclaimed some of the losses late in the US session.

Intel Chart Daily – The Support Is Still Holding

INTC has been stuck in a range for 10 months

China Ties and CEO Scrutiny Raise Red Flags, But is Is True?

Adding to Intel’s downside pressure are emerging concerns over the company’s leadership. Reports surfaced today alleging that CEO Lip-Bu Tan maintains extensive investment ties in China—some allegedly linked to entities with Chinese military connections. Tan, who previously founded the investment firm Walden International, has long-standing relationships with Chinese tech companies, raising fears of potential conflicts of interest amid intensifying geopolitical frictions. These revelations have sparked unease among U.S. lawmakers and investors alike, especially at a time when Washington is pushing for domestic chip manufacturing to reduce reliance on foreign supply chains.

Relative Performance and Long-Term Trends

Despite today’s pullback, Intel has managed to outperform many of its Big Tech peers in 2025, down just 2.4% year-to-date—far better than the 20%+ declines seen in companies like AMD and Nvidia. That said, on a longer-term basis, Intel has remained locked in a multiyear downtrend. After forming a double top near $68–$69 during 2020–2021, the stock has plunged over 75% in the last four years.

Its current range of $18–$26 has served as a key zone of support and resistance, with yesterday’s bounce from the $19 level suggesting some technical stability. But whether this marks the start of a true reversal remains to be seen. Without a confirmed structural turnaround, the downtrend remains intact.

Broader Market Context

Intel’s drop was part of a broader retreat across the tech sector, with the Nasdaq and S&P 500 both falling over 5% on the day. Competitors AMD and Nvidia also declined sharply, down 8.4% and 5.9%, respectively. The pullback reflects a market grappling with mixed signals—cooling inflation via a lower-than-expected CPI report, tempered by heightened geopolitical tensions and rising uncertainty around trade policies.

Conclusion: At a Crossroads

Intel is at a critical juncture. While yesterday’s sharp bounce from long-term support hints at possible recovery, today’s combination of market retreat and questions surrounding the CEO’s China affiliations complicates the outlook. Investors will now be watching closely for signs of whether the stock can stabilize—or if another leg lower is on the horizon.