Mar 13, 2025 - Economy
Charted: Optimism around Intel
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Intel's stock soared nearly 15% today as investors cheered the appointment of a new CEO.
The big picture: The company is in pursuit of a turnaround after falling behind in the chips race and announcing the abrupt exit of former chief Pat Gelsinger.
- The hiring of Lip-Bu Tan is giving investors hope it can get back on track.
- Tan, a former Intel director, served as CEO of Cadence Design Systems from 2009 to 2021, during which the company's stock rose by 32x.
State of play: Tan will be faced immediately with tough decisions regarding Intel's future, including whether the company should be split up.
- TSMC is reportedly interested in taking control of Intel's chip plants, while Broadcom is said to be intrigued by the idea of acquiring Intel's chip design and manufacturing functions.
What they're saying: "We really like the new CEO appointment," Bank of America analyst Vivek Arya wrote today. But the "upside potential however is balanced against risks from a lack of AI roadmap and increasing competition ... amidst a tough macro environment."
