Intel, the tech giant just announced Lip-Bu Tan as its new CEO, effective from March 18, 2025.
If you’re not familiar with Tan, he’s an expert in the semiconductor industry with an amazing track record. Along with taking on the CEO role, Tan is supposed to rejoin Intel’s board of directors.
This leadership shake-up came just after David Zinsner and Michelle (MJ) Johnston Holthaus served as interim co-CEOs. Meanwhile, Frank D. Yeary, who stepped in as interim executive chair, will return to his role as independent chair of the board.
Investors Wasted No Time Celebrating The News
Intel’s stock jumped from $20.68 to $23.50 at market opening and climbed to $23.96 within the first hour of trading. That’s a big win for Intel, especially considering the stock had dipped as low as $19.78 just days earlier.
Clearly, investors are hopeful Tan can help its patents live into the company’s growth strategy.
Intel’s market cap now stands at $103.75 billion. While the company has faced some ups and downs in the past, analysts believe Tan’s leadership could turn things around. Here’s a quick overview of Intel’s financials:
- Dividend Rate: $0.50
- Dividend Yield:24%
- Forward P/E Ratio:70
- Forward EPS Projection: $0.97
Intel has surely struggled with losses, but experts are optimistic about improved earnings under Tan’s direction.
Why Experts Are Holding Intel?
Analysts are playing it safe for now, maintaining a “hold” rating with a median price target of $23.00.
Forecasts range from $17.70 on the low end to $31.00 on the high side. This shows the mix of optimism and caution about what’s next for Intel.
Intel isn’t in the clear yet. The company has lost some serious ground to rivals like Nvidia and Qualcomm, especially in the AI and mobile computing space. Plus, Intel’s recent exit from the Dow Jones Industrial Average was a tough exit.
However, with Tan’s extensive experience (he previously led Cadence Design Systems and founded Walden Catalyst Ventures), there’s strong hope he’ll take Intel toward innovation and success.
Intel’s decision to bring in Lip-Bu Tan is a clear signal that the company is ready for a fresh start.
While analysts remain cautious, investors seem confident that Tan’s leadership could be the boost Intel needs to reclaim its top spot in the semiconductor industry.
