Intel shares surged nearly 15% on Thursday after the company named former board member Lip-Bu Tan as its new CEO. Tan will take over the helm next week, succeeding Pat Gelsinger who left three months ago.
Tan was brought in two years ago to help turn around Intel’s fortunes, but he left due to disagreements about the company’s workforce and culture. Despite his departure, analysts expect him to continue Gelsinger’s plan of keeping chip design and manufacturing operations together.
Tan has a strong track record as CEO of Cadence Design Systems, where he oversaw over a decade of growth. He enjoys credibility as a “neutral party” that could help Intel overcome its challenges. Analysts praise his previous experience on the Intel board, saying it will aid his efforts in making the company more realistic about its future prospects.
However, analysts warn that any turnaround will take years and that Tan has a big job ahead of him. Most investors recommend holding onto their shares, with only a few recommending buying them. With Intel’s market value stuck below $100 billion for the first time in three decades, there is pressure on Tan to deliver concrete results.
Source: https://finance.yahoo.com/news/intel-jumps-10-incoming-ceo-113544914.html