Wall Street says new Intel CEO Lip-Bu Tan is the chipmaker's only shot

A C-suite agelong successful the making astatine Intel (INTC).

Shares of the beat-up chipmaker roseate 12% successful premarket trading connected Thursday arsenic Intel announced Lip-Bu Tan arsenic its imperishable CEO.

Tan was the longtime CEO of Cadence Design Systems (CDNS) from 2009 to 2021. He near Intel's committee successful August 2024 aft serving for 2 years, pursuing what a root tells maine were clashes connected however to presumption the concern with now-ousted CEO and adjacent Intel lifer Pat Gelsinger.

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 successful the notoriously bureaucratic Intel.

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"If anyone tin prevention Intel, it's Lip, but it volition instrumentality years and partners," a root who knows Tan told me. Tan is improbable to rotation disconnected Intel's ailing foundry limb successful the adjacent term, but helium could determination accelerated to inject currency into the concern via a rumored concern with Taiwan Semiconductor (TSM) and the US government.

More layoffs could beryllium imaginable arsenic good nether Tan, the root added.

Intel declined to marque Tan disposable for an interview.

To beryllium sure, Tan has a messiness connected his hands astatine the iconic American tech giant.

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. Net net plunged 76%.

The institution forecasts it volition lone interruption adjacent connected the nett enactment this year.

Here's what Wall Street is saying astir Intel's newish enforcement squad pick.

"We're encouraged by this assignment fixed Lip-Bu Tan's tenure and way grounds of creating shareholder worth arsenic CEO of Cadence and anterior acquisition arsenic an Intel committee member. However, fixed the multitude of challenges that Intel presently faces, we are maintaining our Sector Weight rating, but look guardant to proceeding much astir Mr. Tan's strategy for turning Intel around."

"Having followed Mr. Tan's transformative interaction connected Cadence Design Systems during his eleven-year tenure arsenic CEO astatine that institution arsenic good arsenic galore palmy outcomes related to investments crossed the semiconductor universe, we judge that Mr. Tan is uniquely qualified to effort a reboot of Intel.