Intel Shares up 10%; Lip-Bu Tan Takes Charge as New CEO

Intel shares fell by 10% in the premarket activity as the company welcomed the decision to name former board member Lip-Bu Tan as the company’s new CEO.

Tan will be responsible for reviving the company’s fortunes after it fell short of the AI-driven semiconductor boom.

In the span of five years, the tech major has reported several market share losses in data centers and PCs, as well as billion-dollar losses in its manufacturing business. The stock has fallen by 60% in the past five years.

“Tan in as CEO at Intel was as good as stakeholders could have hoped for,” said TD Cowen analysts, noting that he has “deep relationships” across the chip ecosystem that could draw customers to the company's contract manufacturing business.

Previously, Tan was brought into the board to revive the company, but left due to disagreements over the company's culture and the size of its workforce.