Intel Stock Rises Further as Tan Takes Helm of Chipmaker

Shares of Intel (INTC), Monday’s biggest Nasdaq gainer, are extending their increases in premarket trading as CEO Lip-Bu Tan begins his role at the helm of the struggling chipmaker.

Tan is replacing Pat Gelsinger, who retired late last year after failing to turn around the U.S. chipmaker. Under Gelsinger, Intel’s artificial intelligence (AI) business struggled to compete with global players like Taiwan Semiconductor Manufacturing Co. (TSM).

Reuters reported Monday that Tan is considering “significant changes” to Intel’s chip manufacturing processes and AI strategies. Tan is considering cuts to its middle management ranks and revamping its contract manufacturing business, the report said. 

Analysts and investors have cheered Tan’s appointment, which Intel announced last Wednesday. Tan is the former CEO of Cadence Design Systems (CDNS), a semiconductor software company that counts Intel among its partners.

Intel shares are rising 1% in premarket trading after soaring nearly 7% yesterday but have lost almost 40% of their value in the past 12 months.