Intel Stock Drops 5% as New CEO Reshapes Business, Big Tech Shows Strength
Today most big tech stocks are showing some strength, while Intel shares are nearly 5% lower after CEO’s first public speech, who laid out plans to trim the company in order to concentrate the focus on its core business.
Intel’s Wild Ride: Repeated Swings in Stock Price
Intel (INTC), one of the most unpredictable names in the semiconductor industry, has faced sharp price fluctuations in recent months. The stock has repeatedly fallen below $20 before staging recoveries. In early February, Intel saw a 40% surge from $19 to $27.50, only to reverse course in March, dropping to $19.29 after hitting resistance at the 50-week Simple Moving Average (SMA).
Intel Stock Chart Weekly – The 50 SMA Pushing It Down
Following this decline, Intel rebounded 35% to $26.40, but once again, the 50-week SMA acted as resistance, preventing further gains. A doji candlestick pattern signaled an impending reversal, and selling pressure returned. Today, Intel’s shares declined by $1 (almost 5%), reflecting renewed investor concerns.
New Leadership and Uncertainty Over Intel’s Future
Adding to the volatility, Lip-Bu Tan, Intel’s newly appointed CEO, made his first public appearance today. Tan, who left Intel’s board in 2024 due to disagreements over the company’s direction under former CEO Pat Gelsinger, has returned to steer the company in a new direction.
During his address, Tan revealed that Intel plans to spin off its non-core operations to refocus on its core semiconductor business. However, uncertainty remains over the fate of Intel’s foundry business, a major initiative under Gelsinger’s leadership. While Tan suggested that Intel would not sell its key divisions, he hinted at potential divestitures of non-essential assets, leaving investors speculating on the company’s strategic future.
Broader Tech Market: Strength in Big Tech, Weakness in Semiconductors
Despite Intel’s struggles, the broader tech sector showed resilience today:
Google (GOOG) +1% and Microsoft (MSFT) +0.7%, signaling continued confidence in major tech players.
Nvidia (NVDA) and AMD (AMD) dipped around 1%, suggesting sector-specific challenges in the semiconductor space.
Meanwhile, the consumer cyclical sector saw Tesla (TSLA) surge 3.04%, likely driven by positive news in the EV industry. In contrast, Amazon (AMZN) edged down by 0.24%, indicating mixed sentiment among investors.
Conclusion: Intel’s Future Remains Uncertain Amid Market Shifts
Intel’s stock remains highly volatile as investors react to leadership changes, strategic shifts, and technical resistance levels. While the broader tech market shows strength in big names, semiconductor stocks, including Intel, continue to face selling pressure. Whether Intel’s restructuring under Tan will restore investor confidence or lead to further instability remains to be seen.
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