Intel: new CEO recruited, share price soars.

(CercleFinance.com) - Last night, Intel announced the appointment of Lip-Bu Tan, a former member of its Board of Directors, as its new Chief Executive Officer, with the mission of turning around the processor manufacturer, which has been struggling for several years.


The stock climbed over 16% in early Wall Street trading on Thursday morning in the wake of this announcement.

Lip-Bu Tan, who will take up his post on March 18, will replace interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who succeeded Pat Gelsinger following the latter's resignation in December.

Zinsner will return to his role as CFO, while Johnston Holthaus will remain CEO of Intel Products.

During Lip-Bu Tan's tenure as CEO of Cadence Design Systems, between 2009 and 2021, the electronic components manufacturer's share price soared by 3200%.

In a note released this morning, analysts at Bank of America welcomed the executive's arrival, noting that the market holds him "in high esteem".

In addition to his success at Cadence, BofA praises his recent appointment to Intel's board of directors, which he left last August, as well as the breadth of his network within the semiconductor industry, both in the USA and Asia, following his stint at Walden International, a private equity firm.

The research firm nevertheless believes that this favorable element is offset by Intel's lack of strategy in the field of AI, increased competition from Arm processors and a difficult economic environment.

We believe Intel has a better chance of restructuring and turning around its business under its leadership, given its strong brand position in processors for enterprise PCs and servers, which increases the chances of success", adds BofA.

The research firm is therefore raising its opinion on the stock from 'underperform' to 'neutral', with a price target raised from $19 to $25.

Since its all-time high of $67.1 in 2020, the stock has lost 54% of its value.

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