Intel down 5% 📉

Former Intel CEO, Pat Gelsinger, sharply criticized the implementation of the U.S. "CHIPS Act," emphasizing that despite billions in government investments, the actual impact of the program on the development of semiconductor production in the U.S. is negligible. His remarks during the program sparked a lively discussion in the market and led to a temporary shift in sentiment towards the company's stock.
Gelsinger also criticized the U.S. Department of Commerce for long-standing delays in the program's execution. He noted that for over two and a half years, "nothing happened," despite the CHIPS Act being intended to accelerate the construction of domestic semiconductor factories and make the U.S. industry independent of Asian suppliers.
The former Intel chief stated that the U.S. government's stake in the company, valued at approximately $11.1 billion, only makes sense if it actually translates into the creation and filling of new chip factories.
Although Intel's shares have risen by roughly 58% over the past 12 months, the five-year view still shows the stock price is over 30% lower. Gelsinger admitted that the company made a series of strategic mistakes over the past 15 years, losing technological advantage and being late to the AI revolution. Meanwhile, Nvidia has dominated the data center market, and AMD has taken a significant portion of the processor market from Intel. Gelsinger did, however, carefully avoided acknowledging his direct input into those "strategic mistakes".
Simultaneously, Bank of America analysts downgraded Intel's recommendation to "Underperform" and lowered its target price. They pointed out that the company still lacks a competitive AI product portfolio and has limited restructuring capabilities, despite a solid balance sheet.
In response to Gelsinger's comments, investors reacted nervously. The company depreciated by about 4% in the current session with high transaction volume. Negative comments reminded investors of Intel's structural problems, which remain unaddressed by the current management.
The former CEO's words served as a reminder to the market that without real reforms in the company, short-term stock price increases may quickly give way to further declines.

Source: xstation5
The price halted after recent declines at the EMA100 average and the FIBO 38.2 level. If buyers want to prevent further declines, defending this support will be necessary. If unsuccessful, the price is likely to depreciate to around $33 and another broad resistance zone between FIBO levels 50 and 61.8, below which lies the EMA200 average.