Intel said it has appointed Lip-Bu Tan as its new CEO. Lip-Bu Tan, the chip industry veteran, who previously helmed Cadence Design Systems is going to take over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus. Announcement of Lip-Bu Tan as Intel’s new CEO happens as the chipmaker is attempting to recover from a turmoil-filled four-year under Pat Gelsinger.
Intel’s new CEO, Lip-Bu Tan
Tan is no stranger to Intel. Intel’s new CEO served on the company’s board in 2022 but left in 2024.
Tan stated, “I am honored to join Intel as CEO.” He further added, “I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.”
Intel’s new CEO announcement a step towards change
Intel announcing Tan as new CEO when the company is going through one of its toughest time. The chipmaker has lost its lead in process manufacturing to TSMC. In AI, Intel has gotten trounced by Nvidia, whose graphics processing units (GPUs) have become the chip of choice for developers over the past few years.
It now faces increased competition from longtime rival AMD and a renewed effort by Qualcomm to break into the PC chip space, threatening Intel’s biggest moneymaker.
Intel’s declining sales
The appointment of new CEO is seen as a start of a new dawn for Intel as investors pressured the semiconductor company to cut costs and spin off businesses due to declining sales and an inability to penetrate into the AI market.
The semiconductor giant has also received billions of dollars via the CHIPS Act to help pay for new manufacturing facilities in the U.S., But Intel says a part of the project is delayed and now instead of 2025 shall be completed in 2030.
Intel stock
Intel stock jumped 12% in extended trading following the announcement. Though Intel stock has plummeted 54% over the last year as the company’s revenue has shrunk from its pandemic highs.
In November, Intel was removed from the Dow Jones Industrial Average and was replaced by Nvidia. Intel shares lost 60% of their value last year, while Nvidia’s stock price soared 171%. At Wednesday’s close, Intel’s market value was $89.5B, less than one-thirtieth of Nvidia’s valuation.
Intel’s weak forecast
Intel issued a weak forecast in January even as it beat on earnings and revenue.
