Intel’s (INTC) stock was the S&P 500’s top performer this week after the chipmaker named a new CEO amid speculation about the future of its foundry business.
The company announced Wednesday that Lip-Bu Tan, the former CEO of semiconductor software firm Cadence Design Systems (CDNS), will become its new CEO as of next Tuesday, sending shares soaring. They’ve added close to 17% this week, at $24.05 as of Friday’s close.
Deutsche Bank analysts called the move a “desirable outcome” for Intel, highlighting Tan’s “extensive expertise in the semiconductor ecosystem.”
Bank of America analysts suggested Tan could usher in a strategic shift for the company’s foundry business, which has been the subject of acquisition rumors for months. Earlier in the week, Reuters reported Taiwan Semiconductor Manufacturing Company (TSM) approached other chip firms Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to own and run the U.S. chipmaker’s foundry division.
The foundry has also been viewed as a potential beneficiary of the Trump administration’s stated goal of ensuring artificial intelligence chips are designed and manufactured in the U.S. The Reuters report said Trump asked TSMC for help in turning around Intel.
With this week’s gains, Intel’s stock is up 20% in 2025, making it the best-performing chip stock on the S&P 500 for the year so far. That’s a stark change from 2024, which saw the chipmaker’s stock lose more than half of its value.