Intel appoints Lip-Bu Tan as new CEO and stock surges 11% following announcement
Intel has appointed Lip-Bu Tan as its new CEO, resulting in an 11% surge in stock price. Learn about Tan’s leadership and the challenges Intel faces, including competition from TSMC, Nvidia, and AMD.
Intel Corporation (INTC) has appointed Lip-Bu Tan as its new CEO, signaling a fresh leadership direction for the company. Tan, a seasoned veteran in the semiconductor industry, takes over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who had stepped in following the ousting of former CEO Pat Gelsinger in late 2024.
Intel's shares soar following Lip-Bu Tan’s CEO announcement
Following the announcement of Tan’s appointment, Intel’s stock surged by more than 11% in after-hours trading, reflecting investor optimism over the leadership change. The stock climbed from its previous close of $20.68 to $23.04 after the announcement, signaling a potential shift in the company's trajectory under Tan’s leadership.
Lip-Bu Tan, who previously led Cadence Design Systems, is no stranger to Intel. He had served on Intel’s board in 2022 before stepping down in 2024, reportedly due to disagreements with Gelsinger over the company's turnaround strategy. Tan is poised to tackle the significant challenges Intel faces, including the loss of leadership in process manufacturing to TSMC and missed opportunities in the AI space to Nvidia.
"I am honored to join Intel as CEO," Tan said in a statement. "I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders."
Intel’s stock has dropped by 54% over the past year. Photo: TipRanks
Intel's challenges in a competitive market
Tan inherits Intel at a time when the company faces its toughest challenges yet. Intel has been outpaced by its rivals, with TSMC taking the lead in semiconductor manufacturing processes, and Nvidia gaining dominance in the artificial intelligence (AI) sector. As a result, Intel’s stock has dropped by 54% over the past year, and the company’s revenue has decreased significantly from its pandemic-era highs.
The competition is also intensifying from long-time rival AMD and Qualcomm’s push into the PC chip market, both of which threaten Intel’s core business of PC processors.
Despite these setbacks, Intel has received billions in funding through the CHIPS Act, which is aimed at boosting U.S. semiconductor manufacturing. A significant part of this plan involves a major manufacturing campus in Ohio, which, although delayed, is expected to be completed by 2030—five years later than initially planned.