Key Takeaways

Intel ( INTC ) shares surged Thursday after the struggling chipmaker named Lip-Bu Tan its new CEO , raising hopes for a turnaround.

The stock jumped nearly 15% to close at $23.70, leading gains on the S&P 500, even as a broader market sell-off dragged the index into a correction . Still, Intel shares have lost nearly half their value over the past 12 months.

Tan comes to Intel with a “solid track record of success” as the former CEO of Cadence Design Systems ( CDNS ), a semiconductor software company that has partnered with Intel, Bank of America analysts said, adding "we believe INTC has a greater opportunity to restructure/turn things around under his leadership.”

The analysts upgraded their rating for Intel's stock to “neutral” from "underperform" after the announcement, and raised their price target to $25 from $19.

Deutsche Bank analysts echoed their sentiments, calling Tan's appointment a "desirable outcome" for Intel, and highlighted his "extensive expertise in the semiconductor ecosystem." The bank maintained a $23 price target and "hold" rating.

The change in leadership follows months of speculation Intel could sell parts of its business or form new partnerships , with Tan's appointment potentially raising the chances of a strategic shift.

On Wednesday, Reuters reported Taiwan Semiconductor Manufacturing Company ( TSM ) approached several other chip firms including Nvidia ( NVDA ), Advanced Micro Devices ( AMD ), and Broadcom ( AVGO ) about forming a joint venture to run Intel’s foundry. Such an arrangement “could aid INTC's potential turnaround efforts under the incoming new CEO,” BofA analysts said.

UPDATE—March 13, 2025: This article has been updated since it was first published to reflect more recent share price values.

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