Governance Concerns Emerge Amid Intel’s Stock Resurgence

Intel's shares have staged a remarkable recovery this year, but this positive momentum is now being scrutinized under the shadow of significant governance questions. An investigation has leveled serious conflict-of-interest allegations against CEO Lip-Bu Tan, focusing on deals purported to benefit his private venture capital portfolio. This situation raises profound concerns about the corporate oversight at the semiconductor behemoth.

Despite the emerging controversy, Intel's board has expressed support for its chief executive. The eleven independent directors contend that Tan's extensive industry network is a critical asset for repositioning the company within the fiercely competitive chip market. Recent performance appears to bolster this view. Under Tan's leadership, Intel has secured multibillion-dollar investments from Nvidia, SoftBank, and the U.S. government. Investor confidence is also reflected in the equity's performance: the stock has gained approximately 75% since the start of the year, currently trading at €34.41.

The Rivos and SambaNova Deals in Question

A Reuters investigation lies at the heart of the criticism, examining Tan's dual roles across different companies. The case of AI chip startup Rivos is particularly contentious. Tan, who served as its Chairman, reportedly proposed an acquisition to the Intel board. The board rejected this proposal, citing obvious conflicts of interest and a lack of a coherent AI strategy to justify the purchase.

The situation intensified when Rivos was later acquired by Meta at a substantially higher valuation. The bidding competition, partly triggered by Intel's initial involvement, resulted in a financial gain for Tan's venture capital firm, Walden Catalyst. Furthermore, discussions regarding a potential deal with U.S. startup SambaNova are causing unease, as Tan also holds the position of Executive Chairman at that company.

Should investors sell immediately? Or is it worth buying Intel?

Concentration of Power at Intel Capital

Since assuming his role, Tan has taken direct control of the investment division, Intel Capital, halting previous plans for its spin-off. The unit has since invested in several companies where Tan holds interests through vehicles such as A&E Investment LLC or Walden International.

While Intel has implemented policies requiring Tan to recuse himself from decisions involving conflicts, critics highlight a flaw in this safeguard. In such instances, decision-making authority transfers to CFO David Zinsner—who, in turn, reports directly to Tan. Governance experts view this structure as a clear warning signal.

Transparency and Lingering Uncertainty

In retrospect, analysts suggest that establishing a blind trust or a special committee would have been advisable. For now, the precise details of the transactions remain largely opaque to investors. Given that the relevant transparency requirements from the U.S. Securities and Exchange Commission (SEC) will not take effect until spring 2026, the debate surrounding Intel's governance standards is likely to persist as a source of uncertainty.