Intel Plummets 3.35% Amid Trump's CEO Resignation Demand and Sector-Wide Tariff Fears

Summary
• Intel (INTC) drops 3.35% to $19.725, its lowest since March 2025
• Trump's Truth Social post demands CEO Lip-Bu Tan's resignation, citing 'conflict of interest'
• Sector peers like AMD surge 5.2% as Trump unveils 100% tariff exemptions for U.S. chipmakers
• Options market sees 18,000+ contracts traded, with put options at $19 strike dominating volume

Intel's stock is in freefall as President Trump's unprecedented attack on its leadership collides with sector-wide tariff uncertainty. The 3.35% intraday drop—its steepest since the CHIPS Act rollout—reflects both corporate governance panic and macroeconomic fears. With the stock trading below its 200-day MA at $21.69 and RSI at 30.12, the bearish momentum is unrelenting. Meanwhile, sector leaders like AMD are defying the trend, highlighting divergent market narratives.

Trump's Leadership Crisis Sparks Governance Panic
President Trump's Truth Social post demanding Intel CEO Lip-Bu Tan's resignation triggered immediate panic selling. The post labeled Tan 'highly conflicted' due to his ties to Chinese firms, including his tenure at Cadence Design Systems—which recently pleaded guilty to export violations. This political attack introduced existential uncertainty about corporate governance and regulatory scrutiny. The move follows a Senate Intelligence Committee inquiry led by Tom Cotton, who has demanded Tan divest his Chinese interests. With Trump's 100% semiconductor tariff threat looming, investors are pricing in both leadership instability and potential regulatory penalties.

Semiconductor Sector Splits on Trump's Tariff Strategy
While Intel tumbles, sector peers like AMD and TSMC rally on Trump's tariff exemptions for U.S. manufacturers. AMD's 5.2% surge reflects optimism about its Arizona fabrication plans, while TSMC's 4% jump underscores confidence in its $6.6B CHIPS Act funding. The PHLX Semiconductor Index (SOX) gained 1.2%, showing the sector's ability to decouple from Intel's governance crisis. However, this divergence highlights the sector's bifurcation: companies with U.S. manufacturing capabilities benefit from Trump's protectionist policies, while those reliant on global supply chains face heightened risk.

Bearish Options Play Amid Oversold Conditions
• 200-day MA: $21.69 (below) • RSI: 30.12 (oversold) • MACD: -0.617 (bearish) • Bollinger Bands: $18.62–$24.98 (near lower band)

Intel's technicals paint a bearish picture, with price below all major moving averages and RSI in oversold territory. The options market reflects this with heavy put buying at the $19 strike. Two key options stand out:

• INTC20250815P19 (Put, $19 strike, Aug 15 expiry):
- IV: 42.35% (moderate)
- LVR: 89.75% (high leverage)
- Delta: -0.2659 (moderate sensitivity)
- Theta: -0.001764 (slow decay)
- Gamma: 0.249866 (high sensitivity to price moves)
- Turnover: 231,978 (liquid)
- This put option offers 89.75% leverage on a $19.725 stock, ideal for capitalizing on a potential breakdown below $19. A 5% downside scenario (to $18.74) would yield a $0.96 payoff, representing 50% of the strike price.

• INTC20250815C20 (Call, $20 strike, Aug 15 expiry):
- IV: 44.25% (moderate)
- LVR: 44.88% (moderate leverage)
- Delta: 0.4454 (moderate sensitivity)
- Theta: -0.063466 (rapid decay)
- Gamma: 0.288007 (high sensitivity)
- Turnover: 905,392 (highly liquid)
- This call offers 44.88% leverage but faces headwinds from bearish technicals. A 5% downside scenario would result in a $0.96 loss, but its high gamma makes it responsive to volatility spikes.

Aggressive bears should prioritize INTC20250815P19 for its high leverage and liquidity. If $19 breaks, this put could outperform as the stock tests support at $18.62.

Backtest Intel Stock Performance
Intel (INTC) has historically shown mixed performance after experiencing a -3% intraday plunge. While the 3-day win rate is 52.05%, indicating a slightly positive short-term rebound, the 10-day win rate drops to 55.48% and the 30-day win rate falls further to 51.72%. This suggests that while Intel may recover some lost ground in the immediate aftermath of a significant downturn, longer-term returns are more variable. The maximum return observed following the -3% plunge was 0.50% over 14 days, which is relatively modest.

Watch for $19 Breakdown or Regulatory Clarity
Intel's near-term outlook remains bearish as Trump's political pressure and sector-wide tariff uncertainty persist. The stock is testing its 200-day MA at $21.69 and faces critical support at $19.62 (lower Bollinger Band). A breakdown below $19 would validate the bearish case, with potential to retest the 52-week low at $17.67. Meanwhile, sector leader AMD's 5.2% surge highlights the divergence in market sentiment. Investors should monitor Trump's Section 232 tariff implementation and any regulatory updates on Tan's leadership. For now, the INTC20250815P19 put offers the most compelling risk/reward profile in this volatile environment.