After the surprise resignation of its former CEO Patrick Gelsinger last year, Intel Corporation has appointed Gelsinger’s successor, the firm announced earlier today. Intel’s new CEO, Lip-Bu Tan, is back at the firm after having stepped down from its board of directors in 2024. Lip-Bu, like Gelsinger, is an industry veteran and is known primarily for his role at the electronic design automation software products provider Cadence. Cadence’s products are used extensively in the chip industry to design products. Intel’s co-CEOs David Zinsner and Michelle Johnston Holthaus will perform their roles as chief financial officer and CEO of the firm’s products division after Lip-Bu takes charge on March 18th.
Intel Stock Jumps 12% In Aftermarket Trading As Lip-Bu Tan Confirmed New CEO
Lip-Bu will take over Intel at one of the most crucial moments in the firm’s history. Over the past couple of years, not only has Intel struggled in the enterprise computing market, but it has also lost the crown of the world’s leading chip manufacturer to Taiwan’s TSMC. The firm’s former CEO, Patrick Gelsinger, spearheaded a valiant effort to reverse its ill fortunes by focusing on a foundry business to attract chip designers and on the leading-edge 18A manufacturing process to retake the chip manufacturing crown.
However, as Intel struggled to compete with NVIDIA in the AI race, the firm’s stock continued to bleed and closed in 2024 after having shed 59.6% of its value. 2024 also saw the firm suspend its dividend, and the year ended with Gelsinger’s departure.
2025 has been a relatively better year for the shares, as they had gained 2% year-to-date at today’s close. The year so far has seen the stock rise and fall amid speculation surrounding the Trump administration’s keen interest in Intel’s affairs to revive US manufacturing.
Intel’s stock peaked in 2025’s gains so far in mid-February after having gained 35.5%. The rally in the shares started after Vice President JD Vance’s comments about his administration’s goal to ensure that the most advanced AI chips in the world were manufactured in America. Vance’s comments were followed by multiple rounds of speculation and rumors.
Some of these claimed that the Trump administration would incentivize Taiwan’s TSMC to outright buy Intel’s foundries. Others speculated that a joint venture between TSMC and US chip companies could be in the works.
Like his predecessor, Lip-Bu has extensive experience in the semiconductor industry. An MIT graduate, the new Intel CEO also has a background in finance through having worked at an investment and venture capital firms. He entered the semiconductor industry in 2004 after being appointed to the board of EDA software provider Cadence. Lip-Bu would later become Cadence’s CEO and join Intel’s board in 2022.
The new CEO’s experience in finance could prove to be valuable in case Intel decides to split itself into manufacturing and product businesses. The firm’s shares immediately jumped by 12% in aftermarket trading after the announcement, indicating that investors were ecstatic with the new executive. His prepared comments part of Intel’s press release saw Lip-Bu stress that he saw “significant opportunities to remake our business in ways that serve our customers better and create value for our shareholders.“
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