"For nearly four years, Intel's then-CEO, Pat Gelsinger, attempted to turn around the semiconductor giant. But he failed: the company's stock ultimately declined 61% during his tenure. Gelsinger resigned almost a year ago; his replacement, Lip-Bu Tan, was met almost immediately with a broadside from President Trump, who told Intel's board to oust him due to his China-linked investments and perceived conflicts of interest."
"Defying the odds, Tan survived -- he attracted $16 billion in investments from the US government (which has become Intel's largest single investor with a 10% share), Nvidia, and Softbank; focused on trimming expenses; and gave investors hope that a turnaround is finally underway. "This funding should help Intel build factories, or fabs, for 14A, the next generation of leading-edge chips," said Brian Coelho, senior equity analyst at Morningstar. "Intel probably wasn't going to make these investments without both financial support and customer interest.""
Intel's stock declined 61% during Pat Gelsinger's nearly four-year turnaround attempt. Gelsinger resigned almost a year ago and his replacement, Lip-Bu Tan, faced criticism over China-linked investments and perceived conflicts of interest. Tan secured approximately $16 billion in investments from the US government (now a 10% shareholder), Nvidia, and SoftBank, while trimming expenses. Those deals and cost reductions correlated with a 40.05% share price increase since August, outpacing competitors such as Qualcomm and AMD. A single-day 8% share decline in July erased about $8 billion in market value after Tan warned of major restructuring and a potential exit from chip manufacturing due to difficulties.
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