Why Intel’s New CEO Has Wall Street Excited

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Key Takeaways

• Intel shares surged Thursday after the struggling chipmaker named Lip-Bu Tan its new CEO, raising hopes for a turnaround. 
• Bank of America and Deutsche Bank analysts highlighted the recent Cadence Design Systems CEO’s strong track record and experience in the semiconductor industry.
• The analysts also suggested a communal venture with rivals could help, following reports of deal talks.

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

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

Tan comes to Intel with a “upstanding 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 ventured, adding “we believe INTC has a greater opportunity to restructure/turn things around under his leadership.”

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

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

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

On Wednesday, Reuters check up oned Taiwan Semiconductor Manufacturing Company (TSM) approached several other chip firms including Nvidia (NVDA), Aided Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to run Intel’s foundry. Such an arrangement “could aid INTC’s quiescent turnaround efforts under the incoming new CEO,” BofA analysts said. 

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