Intel (INTC) named Lip-Bu Tan its new CEO, sending the chipmaker’s inventory larger in after-hours buying and selling Wednesday.

Tan, who is about to take the helm of Intel as of subsequent Tuesday, is the previous CEO of Cadence Design Methods (CDNS), a semiconductor software program firm that counts Intel amongst its companions.

Tan will succeed interim Co-CEOs David Zinsner and Michelle Johnston Holthaus, who’ve shared the place since Pat Gelsinger retired in December. The pair will retain their roles as chief monetary officer and CEO of Intel Merchandise, respectively. 

Shares of Intel soared over 10% in after-hours buying and selling Wednesday following the information, after gaining shut to five% in the course of the common session on reported deal talks amid a broader rally for tech stocks.

Tan’s Appointment Follows Studies of Deal Talks

Tan might face numerous challenges to engineer a turnaround for the struggling chipmaker, along with his appointment following months of hypothesis Intel could sell parts of its business or form new partnerships. 

Earlier Wednesday, Reuters reported Taiwan Semiconductor Manufacturing Firm (TSM) approached a number of different chip corporations together with Nvidia (NVDA), Superior Micro Units (AMD), and Broadcom (AVGO) about forming a three way partnership to run Intel’s foundry division. TSMC, Broadcom, and Qualcomm (QCOM) have additionally reportedly considered bids to acquire components of Intel.

Studies of potential offers with rivals had been among the few issues that lifted Intel’s inventory this 12 months, with shares up about 3% because the begin of the 12 months by means of Wednesday’s shut, after a tough 2024 that noticed shares lose over half of their worth. 

Wall Avenue analysts have beforehand advised the appointment of a brand new CEO and modifications to the corporate’s turnaround technique may very well be positive catalysts for the inventory, although they warned Intel’s points might take appreciable time to work by means of.

UPDATE—March 12, 2025: This text has been up to date because it was first revealed to incorporate extra info and replicate newer share value values.