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Takeaways
- Intel's stock was the S&P 500's top performer this week after the chipmaker named a new CEO.
- The company announced on Wednesday that veteran semiconductor executive Lip Bu Tan will be its next CEO, effective March 18,
- The appointment also follows speculation about deal talks, with Reuters reporting TSMC approached other chip firms about forming a joint venture to run Intel's foundry.
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.
Shares soared after the company announced that Lip-Bu Tang, former CEO of semiconductor software company Cadence Design Systems, will be its new CEO starting next Tuesday. They’ve gained nearly 17% this past week, and are now at $24.05 by Friday’s close.
Analysts at Deutsche Bank praised Tan’s expertise in the semiconductor industry, calling the move a “desirable result” for Intel.
Bank of America analyst suggested Tan could be the catalyst for a strategic change for the company’s business foundry, which has been a subject of acquisition speculation for months. Reuters reported that Taiwan Semiconductor Manufacturing Company had approached Nvidia, Advanced Micro Devices and Broadcom about forming a joint-venture to run and own the U.S. foundry division.
The foundry is also seen as a potential beneficiary from the Trump administration’s stated aim to ensure artificial intelligence chips are manufactured and designed in the U.S. According to Reuters, Trump asked TSMC to help turn 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.
