Intel’s stock was the top performer in the S&P 500 this week after the company named Lip-Bu Tan as its new CEO, effective March 18. The appointment comes amid speculation about deal talks and a potential shift in the company’s foundry business.
Tan, the former CEO of semiconductor software firm Cadence Design Systems, will bring extensive expertise to Intel. Deutsche Bank analysts call the move a “desirable outcome,” while Bank of America analysts suggest Tan could lead a strategic overhaul of the company’s foundry division.
The news also follows reports that Taiwan Semiconductor Manufacturing Company (TSMC) approached other chip firms about forming a joint venture to own and run Intel’s foundry. The foundry business has been seen as a potential beneficiary of the Trump administration’s goal to ensure artificial intelligence chips are designed and manufactured in the US.
With Tan at the helm, Intel’s stock is up 17% this week, making it the best-performing chip stock on the S&P 500 for the year so far. This marks a stark change from 2024, when the company’s stock lost more than half its value.
Source: https://www.investopedia.com/how-intel-became-the-s-and-p-500-top-performer-this-week-11697575