• Source:JND
Add as a preferred

Intel appoints new CEO: Intel has tapped Lip-Bu Tan as its new CEO, marking a major leadership shift as the struggling chip giant looks to regain its footing. The announcement, made Wednesday, sent Intel shares soaring 12% in extended trading.

Tan, the former CEO of Cadence Design Systems, is no stranger to the semiconductor world. His company’s software is widely used across the industry, including by Intel. He had previously served on Intel’s board but stepped down last year to focus on other commitments. Now, he’s not only taking the helm but also rejoining the board.

His appointment brings an end to a period of instability at Intel. In December, the company parted ways with Pat Gelsinger, who had been leading a costly and ambitious effort to turn Intel into a top-tier chip manufacturer for other companies. Interim co-CEOs David Zinsner and MJ Holthaus stepped in after Gelsinger’s departure, but investors remained wary of the company’s trajectory.

ALSO READ: Oppo F29 5G & F29 Pro 5G Set To Launch In India – Check Features, Colors & Specs

Tan now inherits a company under intense pressure. Intel has struggled with declining sales, rising costs, and a failure to make a meaningful dent in the booming artificial intelligence market. Nvidia, its biggest rival in AI chips, has dominated the space, leaving Intel scrambling to catch up.

In a statement on Intel’s website, Tan made it clear that he’s ready to shake things up. “Where we have momentum, we need to build on it. Where we’re behind, we need to take bold steps to leap ahead. And where our progress has been too slow, we have to pick up the pace.”

This marks Intel’s fourth CEO in just seven years. The leadership carousel began in 2018 when Brian Krzanich resigned over an inappropriate relationship with an employee. Bob Swan stepped in but lasted only two years before Gelsinger took over in 2021. His tenure was defined by an ambitious—but costly—plan to transform Intel into a major chip foundry, manufacturing for both itself and other companies. The strategy required massive investment, including a $20 billion factory project in Ohio, but ultimately failed to win over investors.

After a weak earnings report last fall, speculation swirled that Intel could be up for sale, with companies like Qualcomm rumored to be interested. Some analysts even suggested Intel might spin off its foundry business or sell its core chip divisions, including its PC and server processor units. Meanwhile, Nvidia’s meteoric rise—fueled by its dominance in AI chips—further widened the gap between the two companies.

Frank Yeary, who had been serving as interim executive chair during the CEO search, expressed confidence in Tan’s ability to turn things around. “Lip-Bu has a proven record of creating value for shareholders,” Yeary said in a statement. “We’re thrilled to have him leading Intel as we work to accelerate our comeback and seize the big opportunities ahead.”

With Tan now in charge, Zinsner will return to his role as CFO, and Holthaus will continue to oversee Intel’s product division.

The company still faces serious challenges. It was removed from the Dow Jones Industrial Average in November, with Nvidia taking its place—a stark reflection of Intel’s struggles and Nvidia’s rise. Last year, Intel’s stock price plummeted 60%, while Nvidia’s soared 171%.

At Wednesday’s close, Intel had a market cap of $89.5 billion—less than one-thirtieth of Nvidia’s staggering valuation. Now, all eyes are on Tan to see if he can lead a true Intel comeback.

ALSO READ: Vivo X200 Ultra & X200 Mini Set For Launch In India? Here’s Everything You Need to Know!