Intel Stock Jumps 12% as Lip-Bu Tan Named CEO, Replacing Ousted Pat Gelsinger

Key Takeaways

• Intel has appointed Lip-Bu Tan as its CEO.
• The American chipmaker was without a chief executive for three months after Pat Gelsinger was ousted in December 2024.
• Responding to the news, Intel’s share price jumped as much as 12% in after-hours trading on Wednesday.

Over three months after Pat Gelsinger was pushed out as Intel’s CEO, board members selected Lip-Bu Tan as his replacement.

Traders responded positively to Lip-Bu’s appointment, which marks the end of a period of uncertainty for Intel.

Intel Stock Jumps on CEO Appointment

In after-hours trading on Wednesday, Intel’s share price leaped more than 12% to a high of $23.40 as traders welcomed the prospect of a new CEO.

The optimism marks a turnaround for the stock, which has been in decline since mid-February.

Under former CEO Gelsinger, Intel’s share price fell from highs of over $68 in 2021 to recent lows of below $20.

Intel’s Change of Course

During his tenure, many investors became frustrated with the slow progress Intel was making toward its manufacturing ambitions, which cost the company as much as $25 billion per year.

While Gelsinger championed a manufacturing strategy known as Integrated Device Manufacturing (IDM) 2.0, the firm is now likely to sell its foundry unit.

In the latest development, Taiwan Semiconductor Manufacturing Company (TSMC) has proposed jointly operating the division with Advanced Micro Devices (AMD), Broadcom and Nvidia.

AMD’s involvement could be crucial to the deal’s success. A complex cross-licensing arrangement between the two American chip giants essentially grants AMD veto power over any potential takeover.

Who Is Lip-Bu Tan?

By all accounts, Lip-Bu is highly qualified to lead Intel during the next stage of its journey and was among the favorites to succeed Gelsinger.

He previously spent two years on Intel’s board of directors between 2022 and 2024 and has served in executive roles at major hardware and software companies.

In a press release accompanying the announcement, Lip-Bu Tan outlined his goals as CEO.

“Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. And, together, I’m confident we can turn our business around,” he stated.

Like Gelsinger before him, Lip-Bu has experience with semiconductor design and manufacturing. For example, he served as the CEO of Cadence Design Systems and sat on the board of Semiconductor Manufacturing International Corporation.

This would make him well-suited to carry the torch of IDM 2.0 during Intel’s period of change. If the proposed acquisitions are finalized, Intel’s era as a traditional integrated device manufacturer may be coming to an end.