Intel (INTC) Appoints New CEO, Shares Surge 10%

Intel Corporation (INTC, Financial) has announced the appointment of Lip-Bu Tan as its new Chief Executive Officer, effective March 18. Tan, who has extensive experience in the semiconductor industry, will be tasked with revitalizing the company. Upon the announcement, Intel’s stock surged by 10% in after-hours trading. This appointment concludes a lengthy search for a new CEO following the ousting of former CEO Pat Gelsinger last December.

Gelsinger’s tenure was marked by costly and ineffective transformation plans, which eroded investor confidence. Tan, who previously served as CEO of Cadence Design Systems from 2009 to 2021, successfully doubled the company’s revenue and increased its stock price by over 3200% during his leadership. His departure from Intel’s board was reportedly due to disagreements with Gelsinger over the company’s strategic direction.

Under Tan’s leadership, Intel aims to become an engineering-focused company, prioritizing product development and customer satisfaction. Prior to Tan’s appointment, there were rumors of Intel potentially selling its chip foundry business, with reports of a proposed joint venture with TSMC, NVIDIA, AMD, and Broadcom.

Intel’s advanced 18A manufacturing technology has been a contentious point in negotiations with TSMC, with Intel executives claiming it surpasses TSMC’s 2nm process. While some board members supported the deal, others opposed it. Tan’s return brings stability to Intel, indicating that the company may not split its chip design and manufacturing businesses.

Despite significant challenges, including a struggling foundry business and competition from NVIDIA, which has become the highest-valued U.S. semiconductor company, Tan is optimistic about restoring Intel’s status as a world-class product company. He aims to transform Intel into a leading foundry and enhance customer satisfaction.

Following Tan’s appointment, co-CEOs David Zinsner and Michelle Johnston Holthaus will return to their previous roles as CFO and head of Intel’s product division, respectively. Intel’s recent financial report showed a 7% year-over-year decline in Q4 revenue and a net loss of $153 million. The company forecasts Q1 2025 revenue between $11.7 billion and $12.7 billion, with an expected EPS of -$0.27.