Intel shares surge 10% as company announces new CEO
Intel shares surge on leadership change announcement.
Intel Corp. (INTC) shares soared 10% in after-hours trading Wednesday following the announcement of Lip-Bu Tan as the company’s new CEO.
Tan, a former board member and a respected veteran in the semiconductor industry, previously served as CEO of Cadence Design Systems (CDNS). He will take over from interim co-CEOs David Zinsner and Michelle Johnston Holthaus, who have led the company since Pat Gelsinger’s retirement in December, reports Investopedia.
Tan assumes the role next Tuesday. The appointment comes amid mounting pressure on Intel to strengthen its position in the competitive AI chip market after losing more than half its stock value over the past year.
Strategic Shifts and Market Reaction
The leadership change follows reports that Taiwan Semiconductor Manufacturing Company (TSMC) has approached Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to acquire and run Intel’s foundry division. This unit manufactures chips for third-party customers and has faced increasing competition.
Intel’s stock, which has been mostly rangebound since a sharp decline in August 2024, saw renewed investor interest on the news. It closed the after-hours session at $22.84, reflecting hopes that Tan’s industry expertise could help drive a turnaround.
Key Technical Levels and Outlook
Despite recent struggles, Intel shares showed signs of stabilizing after testing a multi-month trading floor. A brief rally to the 200-day moving average hinted at bullish potential, and the CEO announcement has fueled expectations for a sustained uptrend.
Investors will be watching closely for a breakout above resistance levels and monitoring support if the stock revisits recent lows. As the market reacts to the leadership transition, Intel’s strategy under Tan’s guidance will be crucial in shaping its long-term trajectory.
Earlier, Intel’s stock surged after reports revealed that Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) are exploring acquisition bids for the chipmaker.
