Intel Corp (NASDAQ:INTC, ETR:INL) has named industry veteran and former board member Lip-Bu Tan as its new CEO, effective March 18, in a move welcomed by analysts as a stabilising force for the struggling chip giant.
Reflecting this, the stock spiked 10% in after-hours trading.
The appointment comes three months after the departure of Pat Gelsinger, whose costly turnaround strategy had dented investor confidence.
Tan, a seasoned chip executive and tech investor, was approached by Intel’s board in December. He pledged to restore Intel’s reputation as a leading chip designer and manufacturer.
Intel is navigating a challenging period, missing out on the AI chip boom that has propelled rivals like Nvidia while investing heavily in contract manufacturing. Reports suggested potential interest from Broadcom and TSMC in Intel’s assets, but Tan’s appointment signals the company is unlikely to split up its operations.