In a surprising shake-up, Intel’s CEO Pat Gelsinger has stepped down under board pressure, marking the end of his nearly four-year tenure at the helm of the chipmaking titan.

Gelsinger, who spent a significant part of his career at Intel, was asked by the board to either retire or face removal amid concerns over the slow progress of his ambitious turnaround strategy.

His exit comes at a critical juncture for Intel, a company grappling with fierce competition, declining market value, and strategic uncertainties in the fast-evolving semiconductor industry.

Pat Gelsinger: a legacy marked by challenges and ambition

Pat Gelsinger began his career at Intel in 1979, eventually becoming its first Chief Technology Officer before leaving to lead VMware.

He returned in 2021 as CEO, inheriting a company beset with challenges.

Despite his bold vision to restore Intel’s technological dominance, Gelsinger’s tenure was marred by missed targets and declining investor confidence.

Under Gelsinger, Intel aimed to reclaim its lead in producing the world’s smallest and fastest chips, a title it lost to Taiwan Semiconductor Manufacturing Company (TSMC).

His roadmap included ambitious investments in manufacturing and artificial intelligence capabilities.

However, delays, canceled contracts, and unfulfilled promises left the company struggling to meet expectations.

Intel’s market performance during his tenure further fueled discontent.

The company’s stock lost over half its value this year, lagging behind competitors like Nvidia, whose market valuation soared on the back of advancements in AI chips.

Notably, Nvidia replaced Intel on the prestigious Dow Jones Industrial Average, underscoring Intel’s diminished standing in the semiconductor landscape.

Boardroom shake-up and leadership transition

Gelsinger’s abrupt departure reflects mounting frustrations within Intel’s board.

Reports suggest that his costly turnaround strategy and the slow pace of progress led directors to question his leadership.

As per sources, the board presented Gelsinger with an ultimatum—retire or face removal—and he chose to step down.

In his farewell statement, Gelsinger described his departure as “bittersweet,” reflecting on his decades-long association with the company.

“Leading Intel Corporation has been the honor of my lifetime. While this chapter ends, I am proud of what we’ve achieved together,” he wrote on LinkedIn.

Control of Intel now rests with two key executives: CFO David Zinsner and former head of client computing Michelle Johnston Holthaus.

Both leaders will oversee the company while a search for a permanent CEO is underway.

What lies ahead for Intel?

Gelsinger’s exit has reignited speculation about Intel’s strategic future.

The company, which recently secured $7.86 billion in U.S. government subsidies, faces mounting pressure to adapt to the rapidly changing semiconductor industry.

Reports indicate that Intel’s board has been exploring options previously dismissed by Gelsinger.

These include splitting the company’s manufacturing and product-design businesses or pursuing private equity deals.

Major financial players like Morgan Stanley and Goldman Sachs are reportedly advising Intel on these possibilities.

Moreover, Qualcomm Inc. has previously shown interest in parts of Intel’s business, and Gelsinger’s departure could pave the way for renewed acquisition talks.

Such moves could reshape Intel’s trajectory as it seeks to regain its competitive edge.

Intel’s challenges extend beyond leadership changes.

The company must address declining market share, innovate in AI and advanced chipmaking, and rebuild investor confidence.

With TSMC, Nvidia, and other rivals gaining ground, Intel’s next steps will be critical in determining its relevance in the semiconductor industry.

Gelsinger’s departure marks a turning point for the iconic Silicon Valley firm.

Whether new leadership will embrace bold structural changes or double down on rebuilding its technological prowess remains to be seen.

For now, Intel’s future hangs in the balance, with significant decisions looming on the horizon.

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The SPDR S&P 500 ETF (SPY) stock continued rising and is sitting at a record high as the strength of the equities market accelerates. The fund was trading at $605 on Monday, bringing the year-to-date gains to about 27%.

Other related funds like the Vanguard S&P 500 (VOO) and the iShares S&P 500 (IVV) have also soared this year. 

Technical analysis points to a future SPY ETF reversal

The SPDR S&P 500 ETF has been in a spectacular rally for decades, which explains why it has become one of the most popular funds in Wall Street.

As a result, the fund has constantly remained above the 50-day and 200-day Exponential Moving Averages (EMA), meaning that bulls are in control.

However, historically, the ETF has seen periods of bear markets, as we experienced in 2022, when it crashed by over 20%. 

There is a risk that the fund will have a strong bearish breakout, possibly in 2025. That’s because, as shown below, the fund has been forming a rising wedge chart pattern, which is a popular bearish reversal sign.

This pattern is made up of two ascending trendlines that seem to be converging. The lower line connects all lower lows since August, while the upper one connects the higher highs.

In most periods, a rising wedge pattern results in a strong bearish breakdown, especially when the two lines near their confluence level.

There are other signs that the SPDR S&P 500 ETF will suffer a harsh reversal. For example, the MACD indicator has remained above the zero line but it is moving sideways, a sign of a bearish divergence.

The Relative Strength Index (RSI) indicator has also moved sideways below the overbought level. Also, the stock was trading at the strong pivot release of the Murrey Math Lines indicator.

Therefore, there is a likelihood that the S&P 500 index will suffer a harsh reversal, probably in 2025. If this happens, it will likely drop to the bottom of the trading range at $545.

On the flip side, a move above the key resistance level at $640 will point to more gains, possibly to the extreme overshoot level of $656.

Catalysts for an S&P 500 index reversal 

There are a few potential catalysts for a bearish reversal of the SPDR S&P 500 ETF.

First, Donald Trump has vowed to be tough on trade and has already threatened to impose tariffs on imports to the United States from its key trading partners like China, Mexico, and Canada. If he goes ahead with these plans, there are rising odds that he will trigger a trade war that will impact most companies in the S&P 500 index like NVIDIA and Walmart.

Second, Trump has also vowed to be tough in China, the second biggest economy in the world. He could do that by imposing tariffs and trade restrictions as he did in the last term. These actions could hurt more American companies that do a lot of business in the country.

Third, there are concerns about the valuation of American companies, which could trigger a reset. The forward one-year PE ratio for the S&P 500 index is 22, higher than the five-year moving average of 19 and higher than the ten-year average of 18.

Additionally, the fiscal state of the US economy is major risk as public debt has now surged to over $36 trillion. Analysts expect that the figure will be over $40 trillion in the next few years. Worse, Trump has vowed to cut more taxes, a move that will lead to more deficits over time.

To be clear: a drop in the SPY ETF stock will be brief as it has done in the past decades. Historically, the index drops and then bounces back. We saw that during the COVID-19 years, the Global Financial Crisis, and the dot com bubble.

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Nio stock HK stock price has been under intense pressure in the past few months as concerns about its business and the EV industry remained. It initially surged to H$74.15 in January this year and then plunged to $29.15 in April and August, forming a double-bottom chart pattern. 

Nio shares then bounced back to $60 in September and has now imploded by about 42% to the current $35.50. The same trend has happened in Singapore and the United States, where Nio shares are traded.

Nio stock price analysis: the contrarian case

Turning to the daily chart, we see that the Nio share price has been in a strong bearish trend in the past few months. 

This decline is mostly because of the general weakness of most Chinese EV companies as growth slows.

Nio stock HK has also dropped below the 50-day and 100-day Exponential Moving Averages (EMA). The two lines have formed a bearish crossover pattern.

Notably, it has formed a falling wedge pattern shown in green. This pattern is made up of a series of higher lows and lower lows. In this case, the stock has formed two downward trendlines that are converging. A falling wedge is one of the most bullish reversal patterns in the market.

Nio share price HK is forming a triple-bottom chart pattern, a popular bullish sign. This pattern happens when an asset fails to drop below a key level three times. In most periods, it often leads to more gains. 

Therefore, the stock will likely stage a strong comeback in the next few months. If this happens, the next point to watch will be at $60.60, the neckline of the triple-bottom pattern. This implies a 70% above the current level. 

A break above that level will point to more gains, with the next level to watch being at $76.30, the 50% retracement point, which is 115% above the current level. This price is also a few points above $74.15, its highest swing in December last year.

On the flip side, a drop below the key support at $29.15, the triple-bottom point, will signal more downside. 

NIO chart by TradingView

Nio’s business is showing signs of resilience

There are signs that Nio’s business is doing well even as China’s EV business goes through major headwinds. 

Its numbers released on Sunday showed that Nio delivered 20,575 vehicles in November, a 28% increase from the same period last year. These deliveries included 15,493 Nio vehicles and 5,082 ONVO. 

These numbers are notable since the ONVO brand was launched a few months ago. Nio hopes to deliver between 72k and 75k units this year.

The financial results showed that Nio’s total revenue came in at RMB 18.67 billion in the last quarter, a 2.1% YoY decline. These numbers were a bit higher than the RMB 17.4 billion it made in the second quarter. 

Nio’s net loss rose slightly to CNY 5.0 billion. The company hopes that it will become profitable in the coming years. Most importantly, its balance sheet has improved after raising RMB 3.3 billion from Hefei Jianheng New Energy Automobile. It ended the last quarter with about $6 billion in cash and short-term investments.

In addition to its strong balance sheet, there are signs that the Nio stock price is undervalued. It has a forward EV-to-sales ratio of 1.02, lower than the sector median of 1.34. Its forward price-to-sales was 0.9, lower than other EV companies like Rivian and XPeng. 

Read more: Nio stock price could enter beast mode, thanks to these catalysts

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Archer Aviation (ACHR) stock price suffered a harsh reversal as the number of investors shorting it jumped. After being one of the best-performing companies in Wall Street, it has dropped by over 26% from its highest level this year. This pullback has brought its market cap to about $4 billion.

Why ACHR stock price jumped in November

The Archer Aviation share price skyrocketed in November as investors rotated back to companies in the Electric Vertical Takeoff and Landing (eVTOL) industry. 

Joby Aviation, the biggest player in the eVTOL industry soared to $9.33, up by over 94% from its lowest level this year. Similarly, Ehang share price jumped by almost 30% in the same period.

The surge happened after the industry received support from an analyst from Needham. In a statement, the analyst hinted that the sector was significantly undervalued and that the companies would ultimately bounce back. 

The analyst remained optimistic in Archer Aviation and Joby, which he believes are better positioned to become market leaders in the industry. Besides, the two companies have raised substantial sums of money and have received most of the certificates they need to start commercialization in 2025 and 2026.

The analyst recommendation then led to the Fear of Missing Out (FOMO) in these eVTOL companies. In technical analysis, these stocks simply moved into the markup phase of the Wyckoff Method. This phase is characterized by higher demand for an asset. 

Why the ACHR share price has crashed

There are three potential reasons why the ACHR stock price has nosedived this month. First, the stock crashed as it entered the distribution or the markdown phase of the Wyckoff Method. In most periods, this is one of the most bearish parts of an asset. 

Second, there are signs that investors have started to short the company as the short interest has risen significantly in the past few weeks. According to SeekingAlpha, Archer Aviation’s short interest has risen to almost 20%, meaning that a fifth of its outstanding shares are held by short-sellers.

These short sellers are likely concerned about Archer Aviation’s untested business model and the fact that it will need to dilute its shareholders to fund its operations. 

Archer’s fundraising from Stellantis had clauses of dilution. As part of the agreement, Stellantis will provide it with manufacturing funds and recoup it through quarterly share distributions.

The most recent results showed that Archer Aviation’s net loss surged to $115 million from $51.6 million a year earlier. Its adjusted EBITDA also rose from minus $64.8 million to minus $93.5 million in the last quarter. It ended the quarter with $501 million in cash, meaning that another cash raise cannot be ruled out.

Many short-sellers also believe that Archer Aviation’s business is untested and that there is uncertainty about whether it will be successful in the long term. 

Read more: Archer Aviation: the next millionaire-maker stock?

Archer Aviation stock analysis

The daily chart shows that the ACHR share price made a strong comeback in November. This recovery happened after the stock formed a falling wedge chart pattern, a popular bullish sign.

It even formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. The stock also moved above the key resistance at $7.45, its highest swing in August 2023.

Archer Aviation has formed a bearish engulfing pattern, a popular reversal pattern. This means that it could drop and move to the 50-day Exponential Moving Average point at $4.57, which is about 37% below the current level. More gains will only be confirmed if it rallies above the year-to-date high of $9.84.

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