Intel CEO Lip Bu Tan Buys 150,000 Shares as Stock Slides on Post-Midterm AI Selloff

Intel CEO Lip Bu Tan purchased 150,000 shares of his own company on Monday at an average price of $64.73 per share, a regulatory filing revealed Wednesday, signaling personal conviction in the chipmaker's recovery even as its stock continued a sharp recent decline.

The purchase came amid a broader selloff in AI-related infrastructure stocks triggered by Democratic gains in Tuesday's midterm elections, which investors interpreted as a potential headwind for data center construction and artificial intelligence capital expenditure programs.

Intel shares fell Wednesday, though they pared losses following disclosure of Tan's open-market purchase. The stock has dropped roughly 50% since the end of September, a stretch that has included significant pressure on semiconductor names broadly.

The buy carries some asterisks. Tan — along with many investors — purchased Intel shares in the $90s in August, around the time the company sold approximately $20 billion of stock in an equity offering that has since weighed heavily on holders.

The midterm results rippled across equity markets Wednesday, with the S&P 500 rising about 1.7% as investors processed the implications of Democrats winning control of Congress. West Texas Intermediate crude fell more than 8%, dropping below $90 per barrel, on expectations that Democratic leadership reduces the likelihood of further escalation in the Middle East conflict.

Data center infrastructure stocks moved sharply lower, reflecting concern that Democratic victories could slow the pace of AI-related construction, particularly in Texas and Ohio. Electrical equipment companies such as Eaton and GE Vernova, as well as semiconductor names including AMD, fell even as both chipmakers reported better-than-expected quarterly results with upbeat guidance.

Hyperscalers, by contrast, rallied. Amazon, Alphabet, and Microsoft all posted gains on the thesis that slower data center development could rein in their aggressive capital expenditure programs and accelerate the timeline for free cash flow to improve. Amazon, Alphabet, and Meta Platforms have all moved into negative free cash flow territory. Microsoft has remained positive, though its free cash flow has fallen more than 20% year over year in consecutive quarters.

Treasury yields declined as well, with the benchmark 10-year yield dipping to 4.9%. Housing-related stocks such as Home Depot benefited from the combined relief of lower oil prices, lower yields, and reduced tariff expectations — returning the home improvement retailer to positive territory for the year for the first time since August.

The AI infrastructure trade's reaction to Tuesday's results underscores how politically exposed the data center buildout has become heading into the new Congress. How much of the anti-data center sentiment translates into concrete policy remains an open question, and analysts caution that any slowdown in construction would be gradual rather than immediate.

In a separate development Wednesday, CVS Health announced plans to separate its national retail pharmacy business from its Aetna insurance unit and CVS Caremark pharmacy benefit manager. The breakup is not expected to be completed until the first half of 2028 — a timeline that could leave the stock in an extended period of uncertainty before the transaction closes.

As policymakers take their seats in the new Congress and companies prepare for a potentially altered regulatory environment, the AI capital expenditure cycle and its effect on semiconductor earnings will remain a central concern for technology investors well into 2027.

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