Intel’s (INTC) shares surged nearly 15% after appointing Lip-Bu Tan as its new CEO, signaling potential for a turnaround. Despite this rise, Intel’s stock has lost nearly half its value over the past year.
Analysts at Bank of America praised Tan’s appointment, noting his “solid track record of success” as former CEO of Cadence Design Systems (CDNS), a semiconductor software company that has partnered with Intel. Following the announcement, BofA analysts upgraded their rating for Intel’s stock to “neutral” from “underperform” and raised their price target to $25 from $19.
Deutsche Bank echoed similar sentiments, highlighting Tan’s “extensive expertise in the semiconductor ecosystem,” maintaining a $23 price target and “hold” rating.
Tan’s appointment follows speculation about Intel selling parts of its business or forming new partnerships. Reports suggest Taiwan Semiconductor Manufacturing Company (TSM) approached firms like Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about a joint venture to manage Intel’s foundry operations, which could aid Intel’s turnaround efforts.
— news from Investopedia