Key Takeaways
- Intel named Lip-Bu Tan its new CEO, effective March 18.
- Tan is the former CEO of Cadence Design Systems, a semiconductor software company that has partnered with Intel.
- The chipmaker had been searching for a permanent CEO since Pat Gelsinger’s retirement late last year.
Intel (INTC) named Lip-Bu Tan its new CEO, sending the chipmaker’s stock higher in after-hours trading Wednesday.
Tan, who is set to take the helm of Intel as of next Tuesday, is the former CEO of Cadence Design Systems (CDNS), a semiconductor software company that counts Intel among its partners.
Tan will succeed interim Co-CEOs David Zinsner and Michelle Johnston Holthaus, who have shared the position since Pat Gelsinger retired in December. The pair will retain their roles as chief financial officer and CEO of Intel Products, respectively.Â
Shares of Intel soared over 10% in after-hours trading Wednesday following the news, after gaining close to 5% during the regular session on reported deal talks amid a broader rally for tech stocks.
Tan’s Appointment Follows Deal Speculation
Tan could face a number of challenges to engineer a turnaround for the struggling chipmaker, with his appointment following months of speculation Intel could sell parts of its business or form new partnerships.Â
Earlier Wednesday, Reuters reported Taiwan Semiconductor Manufacturing Company (TSM) approached several other chip firms including Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to run Intel’s foundry division. TSMC, Broadcom, and Qualcomm (QCOM) have also reportedly considered bids to acquire parts of Intel.
Reports of potential deals with rivals were some of the few things that lifted Intel’s stock this year, with shares up about 3% since the start of the year through Wednesday’s close, after a difficult 2024 that saw shares lose over half of their value.Â
Wall Street analysts have previously suggested the appointment of a new CEO and changes to the company’s turnaround strategy would be positive catalysts for the stock, though they warned Intel’s issues could take considerable time to work through.
UPDATE—March 12, 2025: This article has been updated since it was first published to include additional information and reflect more recent share price values.