Intel's New CEO Lip-Bu Tan Unveils Ambitious AI Strategy and Restructuring Plans

Intel stock rockets 8% on talk of new chief's AI chip strategy

Intel wants to stay ahead of activist investors as it struggles against Nvidia Intel stock jumped more than 8% to about $26 at 1:25 p.m. in New York. The rise over the past week has all but offset its loss in the market correction, and it's now up almost 29% so far this year. Nvidia, which soared with the AI hype cycle, is down about 14% from January 1. In addition to boosting sales for Intel's foundry business, which makes chips designed by other firms, Tan intends to make chips for AI servers, foundation models, and robotics, Reuters (TRI+0.82%) said, citing people familiar with the subject. Intel had neglected those markets, allowing ARM to rise in smartphone chips and Nvidia to dominate in AI. Last week, Tan told attendees of a company town hall that "tough decisions" were needed to revive Intel, possibly including further job cuts targeting middle managers. The company eliminated about 15,000 positions last year. An Intel spokesperson declined to comment on the story to Quartz.

What's Going On With Intel Stock Wednesday? - Intel (NASDAQ:INTC)

Intel Corporation INTC shares are trading lower on Wednesday, pulling back after recent gains driven by the announcement of its new CEO. What To Know: Last week, Intel announced Lip-Bu Tan, former Intel board member and CEO of Cadence Design Systems, as its new CEO, succeeding Co-CEOs David Zinser and Michelle Johnston Holthaus. Tan plans to implement significant changes at Intel, including revamping the company's chip design process, manufacturing operations and AI strategy. In particular, he aims to strengthen Intel's position in the AI chip production market, along with other financial and administrative reforms. "I am honored to join Intel as CEO. I have tremendous respect and admiration for this iconic company, and I see significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders," said Tan. Furthermore, Tan wants to establish an annual AI chip release cycle. He also intends to place greater focus on Intel Foundry, the company's contract chip manufacturing division, which works with clients such as Microsoft. Intel may be falling amid profit taking after gaining on the appointment of Tan. Additionally, hesitation could stem from Intel's recent financial struggles and growing competition from other technology giants. Related Link: Ford Renews Exclusive Partnership with Kentucky Derby, Expands Brand Presence Through 2029 INTC Price Action: At the time of writing, Intel shares are trading 6.40% lower at $24.26, according to data from Benzinga Pro. Image: via Shutterstock INTCIntel Corp $24.33-6.13% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum32.64 Growth80.42 Quality- Value70.57 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs

Intel Shares Are On The Rise Today: What's Going On? - Intel (NASDAQ:INTC)

Intel Corporation INTC shares are trading higher Tuesday after investors reacted to reports of a major leadership shift and restructuring efforts under incoming CEO Lip-Bu Tan. What To Know: Reuters reported that Tan, who was previously a board member and CEO of Cadence Design Systems, is planning an aggressive overhaul of Intel's chip design, manufacturing operations and AI strategy. His plan includes further cost-cutting measures, management restructuring and a renewed push into AI chip production. Tan has been openly critical of former CEO Pat Gelsinger's execution, particularly in manufacturing decisions and Intel's failure to secure a competitive position in the AI market. A key focus of Tan's strategy is revitalizing Intel Foundry, the company's contract chip manufacturing business, which serves clients like Microsoft and Amazon. While Intel previously aimed to challenge Taiwan Semiconductor Manufacturing Co. (TSMC) and Nvidia in AI and semiconductor production, execution missteps and a weakening market led to significant setbacks, including an annual loss of $19 billion in 2024. Tan is expected to push for an annual AI chip release cycle, positioning Intel's next-generation Panther Lake chips -- built on the company's new 18A process -- as a critical test for its ability to compete. However, industry experts note that it could take years for Intel to develop AI hardware capable of rivaling Nvidia's dominance. At an internal town hall, Tan acknowledged the need for difficult decisions to streamline Intel's operations. His leadership marks a shift toward aggressive restructuring and operational efficiency, signaling a departure from Intel's previous approach. INTC Price Action: Intel shares were up 1.54% at $26.08 at the time of writing, according to Benzinga pro. Read Next: Equity Exposure Plummets, Cash Holdings Jump As Investors Rethink 'US Exceptionalism,' Bank Of America Survey Image via Shutterstock. INTCIntel Corp $26.071.46% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum32.88 Growth80.57 Quality- Value69.73 Price Trend Short Medium Long Overview Market News and Data brought to you by Benzinga APIs

Why Intel Stock Is Soaring Today | The Motley Fool

Shares of Intel (INTC 8.19%) are surging on Monday. The company's stock had gained 6.8% at noon ET and was up as much as 8.7% earlier in the day. The strong performance comes as the S&P 500 index remained flat and the Nasdaq Composite index fell 0.4%. The chipmaker's stock is rallying after reports emerged detailing incoming CEO Lip-Bu Tan's plans for a significant strategic overhaul. Reuters reported today that Intel's incoming CEO, Lip-Bu Tan, is considering sweeping changes that could overhaul the struggling company. Tan plans to shift the company's approach to artificial intelligence (AI) and make significant staff cuts aimed at addressing a "slow-moving and bloated middle management layer." Tan told employees last week that the company will need to make "tough decisions," signaling he will take a more aggressive approach than his predecessor. As part of the revamp, Tan's efforts will focus on Intel's manufacturing operations. The company's foundry business, which manufactures chips for external clients and has been a source of disappointment in recent years, will aggressively pursue new customers under Tan. Tan's AI plans include producing chips that can better compete for uber-lucrative data center customers and expanding into software and robotics. Intel has struggled in the last few years, falling behind as the AI boom takes off. The company even reported its first annual loss in nearly 40 years last year. Tan's plan presents a compelling vision, though many of its fruits could take several years to pay off, such as AI chips that can compete with rivals'. Still, I think Intel could be a contender in a few years' time, and given how much its stock has been beaten down in recent years, it is well valued.

Intel - A New CEO and a Fresh Wind of Change, or Just Business as Usual? | Investing.com UK

Even before officially taking office as Intel (NASDAQ:INTC) CEO on 18 March, Lip-Bu Tan outlined ambitious reform plans for the ailing chipmaker. According to insiders, Tan is planning to streamline middle management, increase investment in artificial intelligence (AI) and reorganise semiconductor production. Middle management, in particular, is expected to be affected by job cuts, which Tan has already announced at an internal staff meeting. Intel did not comment on the plans, nor did it grant an interview with Tan. It seems that the buying mood has returned. In any case, the price has risen by around 16% since the announcement of this news. When we look at the general state of Intel in the KI tool InvestingPro, we can clearly see that there is still considerable uncertainty in the market: 34 analysts see the price as fairly valued at $22.90 on average and the financial health is estimated at 2 on a scale of 1 to 5. High marks look different. In terms of the charts, we see a very good chance for Intel to finally turn things around. In the following chart, we can see impressively that the price has already tested our target area (purple box) six times. For us, the target area is the ideal range for a turnaround. That's a good sign, isn't it? Yes, because the stock has managed to produce a strong increase from the purple box and has not fallen below $18.78 so far. That is also the prerequisite for a breakthrough upwards. We expect the stock to now retreat somewhat to the level of the small purple box at $22.85 to $20.81. If it turns up from there and does not fall back below $18.78, we can look forward to a sustained rise as sketched in the chart. Should the stock fall back below $18.78, however, we will have to plan for a final sell-off to at least $15.11. Tan also wants to strengthen Intel's position in the growing AI market, where the company lags behind market leaders such as Nvidia (NASDAQ:NVDA). In addition to developing AI processors, he plans to win back customers for contract manufacturing. However, experts believe that competitive products will not be available until 2027. Intel is also struggling with delays in its new production technology '18A', which is supposed to keep pace with competitors like TSMC. Although Tan's plans seem ambitious, they resemble Gelsinger's strategy in many ways, which also focuses on strengthening contract manufacturing. But with billions in losses and postponed projects, such as the factory construction in Magdeburg, Intel remains under pressure. The reforms could give the company a new lease of life - or push Intel into a potential takeover situation. Therefore, we do not see a compelling case for buying at this point. However, should the stock confirm the low at $18.78, the paper could become more attractive again. Disclaimer/Risk warning: The information provided here is for informational purposes only and does not constitute a recommendation to buy or sell. It should not be understood as an explicit or implicit assurance of a particular price development of the financial instruments mentioned or as a call to action. The purchase of securities involves risks that may lead to the total loss of the capital invested. The information provided does not replace expert investment advice tailored to individual needs. No liability or guarantee is assumed, either explicitly or implicitly, for the timeliness, accuracy, appropriateness or completeness of the information provided, nor for any financial losses. These are expressly not financial analyses, but journalistic texts. Readers who make investment decisions or carry out transactions based on the information provided here do so entirely at their own risk. The authors may hold securities of the companies/securities/shares discussed at the time of publication and therefore a conflict of interest may exist.