Intel Names Lip-Bu Tan Its New CEO, Sending the Chipmaker’s Inventory Hovering

Intel (INTC) named Lip-Bu Tan its new CEO, sending the chipmaker’s inventory larger in after-hours buying and selling Wednesday.

Tan, who is about to take the helm of Intel as of subsequent Tuesday, is the previous CEO of Cadence Design Techniques (CDNS), a semiconductor software program firm that counts Intel amongst its companions.

Tan will succeed interim Co-CEOs David Zinsner and Michelle Johnston Holthaus, who’ve shared the place since Pat Gelsinger retired in December. The pair will retain their roles as chief monetary officer and CEO of Intel Merchandise, respectively. 

Shares of Intel soared over 10% in after-hours buying and selling Wednesday following the information, after gaining shut to five% in the course of the common session on reported deal talks amid a broader rally for tech shares.

Tan’s Appointment Follows Deal Hypothesis

Tan may face quite a few challenges to engineer a turnaround for the struggling chipmaker, along with his appointment following months of hypothesis Intel may promote elements of its enterprise or kind new partnerships. 

Earlier Wednesday, Reuters reported Taiwan Semiconductor Manufacturing Firm (TSM) approached a number of different chip companies together with Nvidia (NVDA), Superior Micro Gadgets (AMD), and Broadcom (AVGO) about forming a three way partnership to run Intel’s foundry division. TSMC, Broadcom, and Qualcomm (QCOM) have additionally reportedly thought of bids to accumulate elements of Intel.

Reviews of potential offers with rivals had been a number of the few issues that lifted Intel’s inventory this yr, with shares up about 3% because the begin of the yr by Wednesday’s shut, after a tough 2024 that noticed shares lose over half of their worth. 

Wall Avenue analysts have beforehand urged the appointment of a brand new CEO and adjustments to the corporate’s turnaround technique can be optimistic catalysts for the inventory, although they warned Intel’s points may take appreciable time to work by.

UPDATE—March 12, 2025: This text has been up to date because it was first printed to incorporate further data and replicate newer share worth values.