Intel pops after naming new CEO, Wall Street backs turnaround effort

Tan previously served as CEO of chip software maker and Intel supplier Cadence Design Systems, and will rejoin the board after departing last year. He replaces interim co-CEOs David Zinsner and MJ Holthaus who took the helm of the company after former CEO Pat Gelsinger’s ousting in December.

The news brings an end to a tumultuous period for the once iconic American semiconductor company that’s shed billions in market value as it largely sits out the artificial intelligence boom that has lifted the broader industry. Intel’s board forced out Gelsinger late last year as confidence dwindled in his ability to turn around the company.

Wall Street appeared to support Intel’s decision, with Deutsche Bank analyst Ross Seymore calling the appointment a “desirable outcome.” Tan’s semiconductor industry experience and prior board position also prime him to “meet the demands” of the role, he added.

Tan “is likely to bring a customer service mindset to the company that is increasingly important to their goals but which has been lacking,” wrote Bernstein’s Stacy Rasgon. “We like him; he was at the top of our list of candidates from a desirability point of view, and we are genuinely happy for the company that he has taken the job.”

Intel stock has gained about 3% this year after shedding nearly two-thirds of its market value in 2024. In August the stock dropped to its lowest level in more than a decade and suffered its worst decline in 50 years after cutting 15% of its workforce and issuing disappointing results.

The company’s underperformance and struggling business has also made it a potential takeover target, with CNBC confirming in September that Qualcomm had approached the company about a takeover. Last month, the Wall Street Journal reported that Broadcom and Taiwan Semiconductor Manufacturing were weighing independent deals to break up Intel.