Intel has a shot at being 'viable' with new CEO at the wheel: Analyst

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Struggling spot elephantine Intel (INTC) could person a changeable astatine aboriginal glory days.

But it's not guaranteed, and it won't beryllium for a while, 1 expert said.

"I deliberation Intel has a overmuch amended changeable of remaining viable successful this manufacture [under caller CEO Lip-Bu Tan]," Bank of America semiconductor expert Vivek Arya said connected Yahoo Finance's Opening Bid podcast (see video supra oregon perceive below). "It's not going to beryllium casual — contention is not sitting still. Their competition, remember, is Nvidia. It's AMD. It's Arm Holdings. It's a Taiwan Semiconductor. It is Broadcom. It's Marvell."

Intel announced Tan arsenic its adjacent CEO connected March 12. He officially began past week.

Tan was the CEO of Cadence Design Systems (CDNS) from 2009 to 2021. After serving connected Intel's committee for 2 years, helium near successful August 2024 pursuing clashes with now-ousted CEO Pat Gelsinger connected however to presumption the business, a root told me.

The root said Tan was interviewed for the CEO relation of Intel astatine the aforesaid clip arsenic Gelsinger. Gelsinger yet got the gig successful 2021 but had to play bully by agreeing to enactment Tan connected the board. Tan often pushed for a amended artificial quality strategy to instrumentality connected Nvidia (NVDA) and faster determination making astatine the notoriously bureaucratic Intel.

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The tech manufacture seasoned has galore challenges connected his hands astatine the iconic American tech player.

Gelsinger led assertive efforts to crook astir the troubled US chipmaker for much than 3 years. He slashed thousands of jobs, improved costs, secured CHIPS Act funding, built spot foundries, and promised accelerated AI chips that could vie with Nvidia and AMD (AMD).

He was fired successful aboriginal December amid missed targets and a currency drain connected the foundry business.

Intel's 4th fourth income fell 7% twelvemonth implicit twelvemonth to $14.3 billion, and nett net plunged 76%. The institution forecasts it volition lone interruption adjacent connected the nett enactment this year.

Tan indispensable stabilize the business, apt done much outgo cuts and caller leadership, and regain spot with Wall Street.

Arya thinks Tan could look for partners to money the costly accumulation of chips, a imaginable cash-saving strategy immoderate connected the Street person pushed Intel to consider. He upgraded his standing connected Intel's banal to Neutral pursuing Tan's appointment.

The banal is excessively inexpensive based connected Intel's intelligence property, Arya added.

"So each we are saying is that the lone worth connected Intel [right now] is conscionable close the bricks and mortar of its fabs, right? Which is evidently not the case," Arya explained. "Now, should it truly beryllium valued arsenic 1 of these maturation companies? Obviously not. So I deliberation what we were trying to accidental is that nether his leadership, Intel has a amended accidental of adding [value] ... and getting recognized for its IP worth due to the fact that [Tan] comes from that background."