Intel pops 13% as chipmaker taps new CEO, Wall Street backs turnaround effort
Intel shares popped more than 11% after announcing Lip-Bu Tan as its new CEO and Wall Street cheered the chipmaker's attempt to turn around its business.
Intel shares popped more than 13% after the struggling chipmaker named Lip-Bu Tan its new CEO and Wall Street cheered the turnaround attempt.
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.