Intel Shares Are On The Rise Today: What’s Going On?

Intel Corporation INTC shares are trading higher Tuesday after investors reacted to reports of a major leadership shift and restructuring efforts under incoming CEO Lip-Bu Tan.

What To Know: Reuters reported that Tan, who was previously a board member and CEO of Cadence Design Systems, is planning an aggressive overhaul of Intel’s chip design, manufacturing operations and AI strategy. His plan includes further cost-cutting measures, management restructuring and a renewed push into AI chip production. Tan has been openly critical of former CEO Pat Gelsinger‘s execution, particularly in manufacturing decisions and Intel’s failure to secure a competitive position in the AI market.

A key focus of Tan’s strategy is revitalizing Intel Foundry, the company’s contract chip manufacturing business, which serves clients like Microsoft and Amazon. While Intel previously aimed to challenge Taiwan Semiconductor Manufacturing Co. (TSMC) and Nvidia in AI and semiconductor production, execution missteps and a weakening market led to significant setbacks, including an annual loss of $19 billion in 2024.

Tan is expected to push for an annual AI chip release cycle, positioning Intel’s next-generation Panther Lake chips—built on the company’s new 18A process—as a critical test for its ability to compete. However, industry experts note that it could take years for Intel to develop AI hardware capable of rivaling Nvidia’s dominance.

At an internal town hall, Tan acknowledged the need for difficult decisions to streamline Intel’s operations. His leadership marks a shift toward aggressive restructuring and operational efficiency, signaling a departure from Intel’s previous approach.

INTC Price Action: Intel shares were up 1.54% at $26.08 at the time of writing, according to Benzinga pro.

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