Intel Corporation shows potential for turnaround with new CEO appointment and strategic moves

From Nasdaq: 2025-04-07 15:00:00

Intel Corporation fell short of expectations in the semiconductor industry but with the appointment of Lip-Bu Tan as the new CEO, investors are optimistic about the company’s turnaround potential. Tan’s successful track record in the semiconductor industry and plans to focus on AI chips and streamline operations are encouraging signs for Intel’s future.

The appointment of Lip-Bu Tan as Intel’s new CEO has been well-received by Wall Street, leading to a 10% increase in the company’s shares. Tan’s successful tenure at Cadence Design Systems and plans to spin-off non-core assets and focus on engineering could help Intel regain its chip leader status.

Intel’s foundry business may strengthen with a potential stake sale to TSMC and the launch of the Panther Lake CPU using the 18A process node. These strategic moves could benefit Intel in the long run and help boost its foundry business.

Despite recent challenges, Intel’s stock may be worth holding onto with the appointment of Lip-Bu Tan and potential growth in the foundry business. Brokers are optimistic about Intel’s growth potential, with an average short-term price target increase. However, challenges such as net income losses and revenue exposure to China remain, making the stock a hold for now.

Zacks Investment Research has identified Intel as a potential turnaround stock for 2025, with the appointment of Lip-Bu Tan as the new CEO. Investors should keep an eye on Intel’s financial performance and tariff issues before considering an investment in the company.



Read more at Nasdaq: Can Intel Be the Turnaround Stock of 2025? Is the Time to Buy Now?