Intel's decline narrows, CEO spends nearly 10 million dollars to increase stock holdings

After a significant correction in the company's share price, Intel CEO Lip-Bu Tan increased his stake, sending a certain signal of confidence to the market.

According to the Form 4 filed with the U.S. Securities and Exchange Commission (SEC), on November 2, Lip-Bu Tan purchased 150,000 shares of Intel common stock on the open market for approximately 9.71 million USD.

The weighted average price for this purchase was 64.7312 USD per share, and the transaction was completed through a family trust. The filing shows that after the transaction, the family trust's holdings of Intel stock rose to 1.4647 million shares, an increase of about 11.4% compared to before the trade.

After the news was announced, Intel's share price briefly rebounded, narrowing its intraday loss to 1.2% at its highest point before edging lower again. As of publication, the share is still down 3.6% in Wednesday's session.

This increase took place after Intel's share price was hit by heavy selling. Last Friday, Intel shares plunged 28.6% in a single day—one of the largest single-day drops in decades.

Previously, Intel had issued fourth-quarter earnings guidance that fell significantly short of market expectations, intensifying investors' concerns about its supply capabilities, profitability outlook, and capital expenditure pressures.

The company expects fourth-quarter revenue to be between 15 billion and 16 billion USD, below analysts’ previous expectations of about 17.07 billion USD. Adjusted earnings per share are projected at 0.25 USD, also below the market expectation of 0.43 USD. The company also stated that weakness in the PC market, limited chip supply, and the shutdown of its Israeli factory will continue to exert pressure on its operations, and positive free cash flow is unlikely to be achieved this year.

The amount of Lip-Bu Tan's latest purchase approaches 10 million USD and was made via an open market transaction, rather than through stock compensation or option exercise.

For investors, when management continues to deploy personal funds following a major share price correction, it may be viewed as a sign of confidence in the company's long-term prospects. However, whether Intel can resolve supply bottlenecks, improve profitability, and deliver on its growth expectations for its manufacturing and AI chip businesses remains key to the stock's future performance.