Intel (INTC+4.07%) stock jumped more than 12% in after hours trading on Wednesday after the chip manufacturer announced that tech industry executive Lip-Bu Tan will be the company’s new chief executive officer, effective March 18.
“Tan is a longtime technology investor and widely respected executive with more than 20 years of semiconductor and software experiences as well as deep relationships across Intel’s ecosystem,” the company said in a press release.
Tan was formerly the CEO of Cadence Design Systems (CDNS+2.54%), and was on Intel’s board for two years until his departure in August 2024.
During his time as CEO, Cadence more than doubled its revenue, expanded operating margins and delivered a stock price appreciation of more than 3,200%.
He replaces interim co-CEOs David Zinsner and MJ Holthaus, who took over in December when former Intel CEO Patrick Gelsinger was ousted.
“Lip-Bu is an exceptional leader whose technology industry expertise, deep relationships across the product and foundry ecosystems, and proven track record of creating shareholder value is exactly what Intel needs in its next CEO,” Frank D. Yeary, independent chair of the board who had taken upon the role of interm executive chair during the CEO search, said in the company’s press release.
Tan will be taking over from interim co-CEOs David Zinsner and MJ Holthaus, who replaced ousted former CEO Patrick Gelsinger.
Gelsinger was ousted in December 2024 following a rocky period for the once-dominant chip company. The chipmaker has been struggling to keep pace with competitors like Nvidia (NVDA+6.18%), which replaced Intel in the Dow Jones Industrial Average back in November 2024.
The company has also been the target of possible acquisitions, and has been working with investment bankers at Morgan Stanley (MS+2.11%) and Goldman Sachs (GS+1.05%) to save its business, including by splitting its foundry division, although nothing has been announced.
Tan shared that he was “honored to join Intel” as CEO.
“Intel has a powerful and differentiated computing platform, a vast customer installed base and a robust manufacturing footprint that is getting stronger by the day as we rebuild our process technology roadmap,” Tan said in the press release.
Intel had a great trading day on Wednesday. The stock ended the day up more than 4% after a Reuters report broke that Taiwan Semiconductor Manufacturing (TSM+3.31%) had approached chip giants Nvidia, AMD (AMD+4.36%), and Broadcom (AVGO+1.65%) to form a joint venture to run Intel’s foundry division.
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