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The Economic Times
Intel CEO who won over Trump and Musk now needs a breakthrough
Intel CEO Lip-Bu Tan, who took the helm in March 2024, initially saw the stock stagnate. However, he has since forged ties with Apple, Tesla, and Elon Musk, and won over President Donald Trump, leading to a record stock price. The US government became Intel's third-largest shareholder after a key White House meeting. Tan also struck a surprise partnership with Musk to build a massive factory complex. Despite these external wins, Intel's fundamental issues persist: it needs better products and manufacturing to regain lost market share. Tan has spent more time externally than internally and has not yet laid out a comprehensive turnaround plan to employees. He acknowledges the company has 'a long way to go' and is recruiting a leadership team by end of June. The broader implications: Intel's turnaround is uncertain and will depend on execution. If successful, it could reshape the semiconductor industry and strengthen US chip manufacturing; if not, Intel risks falling further behind rivals like TSMC and Nvidia.
MonitorConfidence: MediumMid term horizonExecution risk: High
Published 9 May 2026, 16:30 UTC3 min read
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Summary
TL;DR
- Intel stock hit a record after Tan secured partnerships with Apple, Tesla, and Musk.
- Tan turned a White House meeting with Trump into a deal making the US government a major shareholder.
- Musk visited an Intel plant in Oregon and posted a photo with Tan.
- Tan has spent more time externally than internally, leaving employees unclear on the turnaround plan.
- Intel's fundamental issues: need better products and manufacturing to win back market share.
- Tan is recruiting a leadership team, targeting completion by the end of June.
- The company has not yet benefited significantly from the AI boom.
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