Intel CEO’s $10 million stock bet is down nearly $1 million ahead of earnings
Lip-Bu Tan bought 105,263 Intel shares at $95 apiece in August. After climbing to $127.39 in September, the stock has fallen nearly 32% in a month, closing Friday at $86.96 as investors await the chipmaker’s third-quarter results on Thursday.
Intel CEO Lip-Bu Tan bought about $10 million of the company’s stock in August. The shares initially climbed well above his purchase price, reaching $127.39 on Sept. 24, but have since reversed course and fallen below what he paid, ahead of Intel’s third-quarter results on Thursday.
According to an SEC filing, Tan bought 105,263 shares on Aug. 11 at $95 each through a family trust, raising his holdings to 1,314,669 shares. Intel closed at $86.96 on Friday, about 8.5% below his purchase price. That represents a paper loss of roughly $846,000.
Tan’s investment was in the money for weeks. Intel closed at $127.39 on Sept. 24, about 34% above his purchase price. But over the almost exactly one month since, the stock has fallen about 31.7%, losing nearly a third of its value from that peak. The decline included a drop of about 8% on Thursday, as investors weighed whether heavy manufacturing investment and tight supply would translate into stronger results. The shares rose 1.7% on Friday.
Despite the pullback, Intel stock is still up about 121% this year. It is down roughly 31% since early July and remains below its record close of $140.94 on June 22.
Intel reports its third-quarter results after the market closes. Analysts expect adjusted earnings of about 39 to 40 cents a share on revenue of roughly $16.5 billion. The company has guided for revenue of $15.8 billion to $16.8 billion, earnings of 38 cents a share and a gross margin of 42%.
Intel has set a high bar. In July, it reported earnings of 42 cents a share, double the consensus estimate of 21 cents, on revenue of $16.13 billion, up 25% from a year earlier. It raised its 2026 capital-spending forecast to $20 billion from $18 billion, and CFO David Zinsner has said spending in 2027 will be “up meaningfully.”
Analysts have grown more cautious this month. TD Cowen cut its price target to $95 on Oct. 19, while Susquehanna lowered its target to $105 on Oct. 21. The consensus rating is Hold. Intel trades at close to 50 times forward earnings, according to The Motley Fool.
