Intel (INTC -2.33%) shares fell 3.14% Tuesday to close at $19.77, underperforming the broader chip sector despite a generally upbeat day for tech stocks. Trading volume surged to 130.1 million shares, over 50% above its three-month average, as the company faced pressure surrounding CEO Lip-Bu Tan's leadership.
Intel's stock performance lagged behind key peers. Advanced Micro Devices (AMD -3.52%) gained 5.7% to $172.40, and Nvidia (NVDA -3.38%) rose 0.8% to $180.77, both lifted by optimism around proposed tariff relief for U.S.-based chipmakers. The Nasdaq Composite advanced 0.4%, while the S&P 500 dipped 0.1%.
The stock price movement came after public comments from President Donald Trump, who called for Tan's resignation over reporting that noted ties to Chinese investment entities. The president's remarks overshadowed otherwise favorable sector news, including potential U.S. government policy support for domestic semiconductor production.
Intel is in the midst of a strategic shift. Tan, who took over the CEO role at Intel in March 2025, recently acknowledged the company's decline in the AI chip race, as it pivots toward edge computing, cost-cutting, and renewed foundry investments.
Market data sourced from Google Finance and Yahoo! Finance on Tuesday, August 7, 2025.
