Intel stock jumped more than 12% after the chip manufacturer announced tech executive Lip-Bu Tan will be taking over as chief.
“Tan is a longtime technology investor and widely respected executive with more than 20 years of semiconductor and software experiences as well as deep relationships across Intel’s ecosystem,” the company said in a press release.
Tan was formerly the CEO of Cadence $CDNS Design Systems (CDNS), where he more than doubled the company’s revenue and delivered a stock price appreciation of more than 3,200%. He was also on Intel’s board for two years until his departure in August 2024.
“Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO,” Frank D. Yeary, independent chair of the board who had taken upon the role of interim executive chair during the CEO search, said in the company’s press release.
Tan will be taking over from interim co-CEOs David Zinsner and MJ Holthaus. The duo had replaced former CEO Patrick Gelsinger was ousted in December 2024 following a rocky period for the once-dominant chip company.
The chipmaker has been struggling to keep pace with competitors like Nvidia $NVDA (NVDA), which replaced Intel in the Dow Jones Industrial Average back in November 2024.
The company has also been the target of possible acquisitions, and has been working with investment bankers at Morgan Stanley $MS (MS) and Goldman Sachs $GS (GS) to save its business, including by splitting its foundry division, although nothing has been announced.
Tan shared that he was “honored to join Intel” as CEO.
“Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap,” Tan said in the press release.
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