Why Intel’s New CEO Has Wall Street Excited

Intel (INTC) shares surged Thursday after the struggling chipmaker named Lip-Bu Tan its new CEO, raising hopes for a turnaround. 

The stock jumped nearly 15% to close at $23.70, leading gains on the S&P 500, even as a broader market sell-off dragged the index into a correction. Still, Intel shares have lost nearly half their value over the past 12 months. 

Tan comes to Intel with a “solid track record of success” as the former CEO of Cadence Design Systems (CDNS), a semiconductor software company that has partnered with Intel, Bank of America analysts said, adding “we believe INTC has a greater opportunity to restructure/turn things around under his leadership.”

The analysts upgraded their rating for Intel’s stock to “neutral” from “underperform” after the announcement, and raised their price target to $25 from $19.

Deutsche Bank analysts echoed their sentiments, calling Tan’s appointment a “desirable outcome” for Intel, and highlighted his “extensive expertise in the semiconductor ecosystem.” The bank maintained a $23 price target and “hold” rating.

The change in leadership follows months of speculation Intel could sell parts of its business or form new partnerships, with Tan’s appointment potentially raising the chances of a strategic shift.

On 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. Such an arrangement “could aid INTC’s potential turnaround efforts under the incoming new CEO,” BofA analysts said. 

UPDATE—March 13, 2025: This article has been updated since it was first published to reflect more recent share price values.