Intel CEO Lip-Bu Tan buys the dip, investing $9.7 million despite losses on earlier purchase
Tan bought 150,000 shares days after Intel suffered its steepest one-day decline since 1974. The latest purchase brings his total investment since August to nearly $20 million, but his earlier stake is already down about 39%, while the combined position is showing a paper loss of roughly $4.8 million.
Intel CEO Lip-Bu Tan has bought another $9.7 million worth of the company's stock, adding to a position that was already deep under water. Both of his purchases since August are now showing paper losses.
According to a Form 4 filed with the U.S. Securities and Exchange Commission and signed on Nov. 4, Tan bought 150,000 shares through his family trust on Nov. 2, at a weighted average price of $64.73. The trust now holds 1,464,669 shares.
The purchase came on the first trading day after Intel's shares fell 28.6% on Friday following a weak fourth-quarter forecast. It was the stock's steepest one-day decline since 1974. The shares have since fallen further, to $58.27, more than 54% below their peak of nearly $127 in late September.
It was Tan's second purchase of roughly $10 million in less than three months. On Aug. 11, he bought 105,263 shares at $95 apiece. At the current price of $58.27, that stake is worth approximately $6.1 million, representing a paper loss of about $3.9 million.
The latest purchase is also underwater, with the shares down approximately 10%, representing a paper loss of roughly $970,000.
In total, Tan has invested approximately $19.7 million in Intel shares since August, at an average price of about $77.20 per share. The combined 255,263 shares are now worth approximately $14.9 million, leaving the position with a paper loss of about $4.8 million, or 24.5%.
Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below analysts' expectations of approximately $17.07 billion. It also projected adjusted earnings of 25 cents per share, compared with the 43 cents expected by analysts. The company warned that a slowdown in the PC market could persist through at least the first half of 2027, while manufacturing constraints are limiting the supply of server chips.
The explosion at Intel's Kiryat Gat plant in October, which killed two workers and forced the facility to shut down for about two weeks, is expected to cost the company approximately $600 million in revenue over two quarters.
Tan's track record as an Intel investor is mixed. A $25 million purchase in March 2025, at approximately $24 per share, remains deeply in the money. But his August purchase came near the peak of the stock's rally, before the shares lost more than half their value.
