On March 13, 2025, Intel (INTC) shares soared over 14% following the announcement of Lip-Bu Tan as its new chief executive officer, a move Wall Street hailed as a promising step toward reviving the beleaguered semiconductor giant. Tan, a seasoned industry veteran and former CEO of Cadence Design Systems—an Intel supplier—replaces interim co-CEOs David Zinsner and MJ Holthaus, who stepped in after Pat Gelsinger’s exit in December 2024. With Tan also rejoining Intel’s board after leaving in 2024, the appointment ends a chaotic chapter for the once-dominant chipmaker, which has lost billions in market value while missing out on the AI-driven industry boom.
A New Leader for a Struggling Icon
Intel’s struggles have been stark. In 2024, its stock plummeted nearly two-thirds, hitting a decade-low in August after slashing 15% of its workforce and posting dismal results—its worst drop in 50 years. The company, once a Silicon Valley titan, has floundered as competitors like Nvidia and AMD capitalize on the artificial intelligence surge. Gelsinger’s ousting late last year reflected the board’s frustration with his turnaround plan, prompting speculation of takeovers from Qualcomm, Broadcom, and Taiwan Semiconductor Manufacturing (TSMC).
Enter Lip-Bu Tan. With decades of semiconductor expertise, including a transformative 2009-2021 tenure at Cadence where he doubled revenue and boosted stock value by over 3,200%, Tan brings a proven track record. His prior stint on Intel’s board from 2022 to 2024 also gives him insider insight into the company’s challenges. Wall Street analysts are optimistic: Deutsche Bank’s Ross Seymore called it a “desirable outcome,” citing Tan’s ability to “meet the demands” of the role, while UBS’s Timothy Arcuri highlighted his China-Taiwan ties and shareholder value history as potential catalysts.
Why Wall Street Is Cheering
Analysts see Tan as a customer-focused leader who could reposition Intel in a competitive landscape. Bernstein’s Stacy Rasgon praised Tan’s “customer service mindset,” a critical shift for Intel’s foundry ambitions—an area where it’s lagged behind TSMC. “We like him; he was at the top of our list of candidates,” Rasgon wrote, adding that Tan’s appointment is a genuine win for Intel. His relationships across the chip ecosystem, honed at Cadence and through investments at Walden International, could lure clients to Intel’s manufacturing arm, a key piece of its recovery puzzle.
Tan inherits a company at a crossroads. Intel’s market value has hovered below $100 billion—down from its peak—while its Gaudi AI chips have missed sales targets. Yet, the stock’s 14% pop reflects renewed hope. Year-to-date, Intel is up 3% in 2025 after last year’s rout, and Tan’s leadership could stabilize its trajectory—or even fend off breakup bids.
Challenges and Opportunities Ahead
Tan’s mission is daunting: restore Intel’s product leadership, advance its foundry strategy, and regain investor trust. His letter to employees hinted at a unified approach—keeping chip design and manufacturing together—casting doubt on spinoff rumors. Analysts expect this strategy to leverage Intel’s vast infrastructure, including new U.S. plants funded by the CHIPS Act, despite delays pushing Ohio’s campus completion to 2030.
The broader industry context adds urgency. As AI fuels semiconductor demand, Intel must catch up to rivals thriving in data centers and PCs. Tan’s knack for innovation and execution—evident at Cadence—could be the spark Intel needs, but turnarounds take time. For now, Wall Street’s enthusiasm suggests belief in his vision, with his first moves as CEO, effective March 18, 2025, under intense scrutiny.
What’s Next for Intel?
Intel’s 14% surge is a vote of confidence in Lip-Bu Tan, but the road ahead is steep. Can he harness his industry clout to outpace competitors and sidestep takeover threats? The coming months—starting with his official start next week—will test whether this is a fleeting rally or the dawn of Intel’s resurgence. Stay tuned as Tan takes the reins of this American tech icon.
