Why Intel’s New CEO Has Wall Street Excited | Global News Avenue

Intel(INTC) Stocks are struggling chipmakers surged on Thursday New CEO named Lip-bu Tanimprove hope for change.

The stock rose 15% to intraday at $23.84, even the S&P 500, even if it is A wider market sale Drag the index into Correction area. Still, Intel’s stock has lost nearly half of its value over the past 12 months.

As former CEO of Cadence Design Systems, TAN comes to Intel with a “stable record of success” (CDNSBank of America analysts said it is a semiconductor software company that works with Intel, adding: “We believe INTC has a greater chance of restructuring/changing things under his leadership.”

After the announcement, analysts raised their rating of Intel stock to “neutral” of “outperforming the market” and raised their target from $19 to $25.

Deutsche Bank analysts responded to their view, calling Tan’s appointment a “ideal result” for Intel and highlighting his “widespread expertise in the semiconductor ecosystem.” The bank has a price target of $23 and a “hold” rating.

The leadership change comes after months of speculation from Intel Sell ​​part of its business or Create a new partnershipwith Tan’s appointment, it may increase the chances of strategic change.

Wednesday, Reuters Report to Taiwan Semiconductor Manufacturing Company (TSM) Get up Several other chip companies, including Nvidia (NVDA), advanced micro-equipment (AMD) and Broadcom (avgo) Establish a joint venture to run Intel’s founders. BOFA analysts said the arrangement “can help INTC’s potential turnaround efforts under the leadership of the upcoming new CEO.”