Intel's New CEO Just Dropped a Bombshell -- Is This the Comeback Investors Have Been Waiting For?

2 weeks ago 7

Khac Phu Nguyen

Wed, Mar 19, 2025, 10:51 AM 2 min read

Intel (NASDAQ:INTC) conscionable kicked disconnected a large shake-up nether caller CEO Lip-Bu Tan, and he's wasting nary clip making large moves. Tan is acceptable to slash mediate management, overhaul the company's AI strategy, and treble down connected Intel's foundry businessa part that has struggled to support up with Taiwan Semiconductor Manufacturing (NYSE:TSM). With Intel posting a $19 cardinal nonaccomplishment successful 2024, its worst since 1986, Tan is connected a ngo to revive the company's competitory edge. His strategy? A leaner, faster, and much assertive Intel, susceptible of not conscionable designing top-tier chips but besides manufacturing them for giants similar Microsoft and Amazon.

Warning! GuruFocus has detected 6 Warning Signs with INTC.

But the marketplace conscionable threw Intel a curveball. Shares dropped 5.6% astatine 12.33pm, aft Taiwan's National Development Council unopen down speculation that TSMC was eyeing a buyout of Intel's foundry business. Earlier reports had suggested TSMC was successful talks with Nvidia, AMD, and Broadcom astir taking stakes successful a associated task to tally Intel's spot factories. That rumor fueled a 22% year-to-date rally successful Intel's stock. With TSMC's denial, investors are near wondering if Intel tin propulsion disconnected a solo turnaround oregon if it's inactive searching for a lifeline.

Now, the unit is connected Tan to deliver. His occurrence hinges connected locking successful large clients and ramping up accumulation of Intel's next-gen AI chip, Panther Lake. The institution is betting large connected this spot to vie with Nvidia's dominance successful AI processors, but clip is moving out. If Intel can't beryllium its foundry concern is viable, it risks falling adjacent further behind. With Wall Street watching closely, Tan's adjacent moves volition find whether Intel stages a historical comebackor cements its decline.

This nonfiction archetypal appeared connected GuruFocus.