Why Intel Stock Is Plummeting Today

Shares of Intel (NASDAQ: INTC) are falling on Thursday. The chipmaker's stock had lost 8.7% as of 12:20 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite both lost more than 5%.

Intel's stock is feeling pressure from the ongoing trade war with China as well as a Reuters report today that revealed its new CEO has extensive business ties in the country, raising concerns of a potential conflict of interest.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Tan has major ties to China

A report from Reuters revealed today that Intel CEO Lip-Bu Tan has extensive investment connections to Chinese companies. Some Chinese companies that Tan has invested in have ties to the Chinese military. The report outlined how Tan has made hundreds of investments in Chinese companies over decades through the investment firm Walden International, a venture he founded in 1987, as well as two Hong Kong-based holding companies, Sakarya Limited and Seine Limited.

The most troubling investment, although one that Tan has now exited, was his seed investment in Semiconductor Manufacturing International Corp. (SMIC), China's largest chip foundry and major supplier of the Chinese military. The company is under sanction from the U.S. Walden International remains invested in 20 funds and companies alongside Chinese government funds or state-owned enterprises, according to Reuters. Tan remains is chairman of Walden International.

The timing couldn't be worse

Intel is in a critical transition period as Tan takes over a struggling business. It's unclear what the ramifications will be, but given the sensitivity of the semiconductor industry, its importance in national security, and the ongoing tensions with China, the revelations could derail some of Intel's turnaround efforts. I would avoid Intel stock for the time being.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $296,487!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,700!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $509,884!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel. The Motley Fool recommends the following options: short May 2025 $30 calls on Intel. The Motley Fool has a disclosure policy.