A day after Intel (INTC) enjoyed a bounce from the possible sale of its foundry business, the semiconductor stock was racing ahead again in pre-market trading Thursday after naming Lip-Bu Tan as its chief executive officer starting March 18.
Tan has over 20 years of experience in the semiconductor and software industry and served as CEO of Cadence Design Systems (CDNS) from 2009 to 2021.
During his tenure, Cadence, a dominant software and services company for computer-aided design used to create semiconductors, saw revenue double. Its stock rose more than 4,300% over that time, rising from $4 per share to $184 per share.
Tan will have his work cut out for him. Where Intel was once the leading chipmaker, it has dominance has significantly narrowed over the years. It still is the leading x86 CPU chipmaker for desktops and laptops, as well as for server CPUs, but it trails badly in the foundry, GPU, and emerging markets.
It was reports of Taiwan Semiconductor Manufacturing (TSM) seeking to form a joint venture with Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) to take over Intel’s foundry business that sent INTC stock higher yesterday.
While shares had been rising 8% in pre-market trading, they eventually closed up 4.5%. The stock is up more than 11% this morning before the market opened, and as this is a potentially more consequential development following the ouster of former CEO Pat Gelsinger in December, the gains may hold.
INTC stock has lost 53% of its value over the past year, though so far in 2025 it is up 3%, which is actually better than most other semiconductor stocks this year.
Tan is confident he can lead a revival of Intel. Bloomberg reports Tan sent a letter to employees saying, “That’s not to say it will be easy. It won’t be. But I am joining because I believe with every fiber of my being that we have what it takes to win. Intel plays an essential role in the technology ecosystem, both in the US and around the world.”
Right now the market seems to agree he will be successful.
