Intel Corp.’s stock jumped nearly 8% on Monday following reports that incoming CEO Lip-Bu Tan plans to overhaul the company’s manufacturing processes and artificial intelligence strategies. Tan, set to take over Tuesday, is considering trimming middle management ranks and bringing in new clients for Intel’s foundry business.
Tan’s plan involves prioritizing high-volume chip production with at least two large customers, a strategy that could make Intel’s foundry business successful. Analysts and investors have welcomed the appointment, which replaces retiring CEO Pat Gelsinger. Tan’s initial compensation package includes an annual salary of $1 million and the purchase of $25 million in Intel stock.
Despite the boost, Intel shares are still down about 40% from a year ago, but the news has lifted investor confidence, with the company’s stock becoming the biggest gainer on the Nasdaq.
Source: https://www.investopedia.com/intel-stock-leads-nasdaq-gainers-amid-report-of-new-ceo-s-turnaround-plan-11698380